The rally in the copper price won’t last

Chinese demand for copper won't be enough to keep the price rising.

Copper has bounced by 10% to $7,300 a tonne after falling to a near-two-year low last summer. But don't expect this to last. The latest uptick was based on supply disruptions at smelters and a surprisingly sharp drop in stockpiles amid healthy demand in China, which accounts for 40% of total demand.

But there is less to China's appetite for the red metal than meets the eye, as Capital Economics points out.

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