Copper surging

DJ Comex Copper Surges On Chinese Interest, Chart-Based Factors
By Allen Sykora
Of DOW JONES NEWSWIRES

A combination of fundamental and technical influences has pushed copper futures sharply higher in early trading Thursday.
At 9:03 a.m. EST, March copper was up 10 cents to $2.6770 a pound on the Comex division of the New York Mercantile Exchange. It has peaked at $2.69, its strongest level since the $2.70 high of Jan. 11 that some analysts have cited as the next chart resistance.
"The market has been turning around technically as well as fundamentally," said a trader. "We're stopping people out. Some of it is short covering.
"Some of it is the fact that the Chinese are back in. There has been tremendous Chinese buying, apparently, in the scrap and probably the refined as well. This market seems to have found a bottom and has turned higher."
Man Financial analyst Edward Meir, in his daily research report, also pointed to improving Chinese demand. In particular, he cited data showing that China's January imports of refined copper and copper alloy were up 70% from the same month a year ago.
"Commodities are also benefiting from a positive macro environment, as evidenced by Fed Chairman Ben Bernanke's testimony (on the economy) to Congress yesterday," added Meir.
Yet another factor supporting the metal, London-based analysts have said, was short covering in the Chinese market overnight ahead of weeklong Chinese New Year celebrations next week.