July copper prices have traded higher and have reached a new weekly high early in the session. While the copper market received positive Chinese demand predictions from an official with a major global metals producer during the overnight session, the primary focus of the market this morning is likely to remain on expectations of easing from the ECB. In fact, talk of improved Chinese copper demand overnight may have been partially offset by predictions of a near term decline in Chinese copper import totals. In addition, Chinese smelters announced a plan to suspend the export of 200,000 tons of copper to exchange warehouses, which may provide additional support for the market this morning.
Favorable currency market action, anticipation of Federal Reserve easing activity and the potential for a fresh plan to relieve debt anxiety in the Euro zone could also help to strengthen copper prices this morning. The issue of potential US easing might be given additional clarity with the US Fed Beige Book release early this afternoon, which could prompt a sizable price reaction from the copper market.