Copper prices cool off from recent highs; Overall sentiment remains positive

NEW YORK (Scrap Monster) : The early indications of a recovery of the US Economy and the hopes triggered by the surprisingly positive Chinese trade data had taken the copper prices to new highs in early February.

The March Copper Futures on the Comex division of the New York Mercantile Exchange clocked the high point of $3.7820 a pound. Since then, copper along with other base metals has taken a hit.

Several factors attributed to the fall in copper prices.

First and foremost is the lack of Chinese interest due to Lunar New Year holidays. The slump in activity was visible in other Asian markets too.

In addition, the strengthening US dollar against Euro and Yen has also badly affected the price up move.

The set back is not expected to last longer, say market experts.

The positive cues in support of a rebound in copper prices include recovering Chinese and Japanese economy, improving US housing and car markets.

In short, copper along with platinum remains to the top pick of commodities for 2013.