Copper, which has highest volatility in terms of price and demand among other base metals, is expected see an upswing in prices from the second half of this financial year averaging it to $5500-5800 a tonne by 2010, say experts. The inventory in the system since global crash last year has run down and fresh stockpiling has started in the US, Europe and China, enabling the producers to push up prices. ?This recovery is expected to continue for the next few quarters which will keep the prices firm; post which real demand is expected to pick up,? said Ajay Parmar, head research, institutional equities, Emkay Global Financial Services..
According to experts, the green shoots in the copper sector will be largely driven by the expected 10% increase in Chinese demand and recovery of the US housing market. The thrust on energy efficiency and infrastructure development will also boost the demand for copper.
