July copper has started out this morning with moderate gains but prices have yet to climb back towards this week's highs. While Chinese equities were higher overnight and Asian copper prices posted minor gains, copper prices may be pressured by news of another increase in daily LME copper stocks of 3,875 tons. Copper may find additional weakness from news that the first four months of copper exports from Russia this year posted an increase of almost 60% over similar year ago figures. With Peru also indicating an increase in copper production yesterday, the copper market may find pressure from physical supply side developments. While near-term supply could be seen as a negative factor for copper prices, demand-side elements may dominate the market during upcoming trading sessions. The ebb and flow of the European debt situation will likely have a large impact on the copper market, with copper prices also taking some direction from gold and the rise and fall of US easing prospects.
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