While nearby copper prices initially managed a fresh lower low for the move overnight, prices were able to partially recoil from that slide lower. Copper might have garnered some support from predictions from Goldman about the potential for improving Chinese copper demand in the wake of a forecasted improvement in property sales. Copper was probably partially undermined by the markets reaction to Chinese official comments overnight calling for more support of the Chinese economy. Instead of the market embracing that as a sign of better times ahead, the trade saw that as confirmation of more soft economic readings to come. In other words, the trade is seemingly spinning Chinese developments into a negative instead of a positive. With recent US housing data showing some modest improvement and recent US vehicle sales surprising on the upside, the bull camp might be able to make the case that copper prices have the prospect of holding some of the sharp gains that were forged off the late June lows. There was some talk about a tightening of the scrap copper market in China, but to see September copper prices hold consistently above $3.40, might require a positive shift in European news flow or that might require evidence of impending action from the PBOC or US Fed. LME copper stocks overnight declined by 1,100 tons to stand at 253,350 tons.
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