Brent Cook author of a The Gold Report on Mineweb.com, makes the case that the reasons for the current rebound in copper price are temporary:
- China and others are restocking strategic reserves at bargain prices
- Copper producers are holding back supplies from the market due to low prices or lack of buyers
- Asian buyers are converting US dollars into hard assets
- Short covering as the copper price stabilized
- Market arbitrage made it cheaper to import copper cathode into China
- Shortage of scrap supplies due to the lack of credit, low prices and slowing manufacturing activity