SHANGHAI, Jan. 14 (SMM) -- Base metals markets rebounded from a low level thanks to buying interest at low levels. However, China's Central Bank's move to raise the reserve requirement ratio continued to impact the market. LME copper prices ended at USD 7,485/mt, up USD 30/mt. Since downstream producers in China are expected to build up stocks for the upcoming Chinese New Year holiday, optimism towards outlook remains, despite of great negative impact on the market from the higher reserve requirement ratio by the Chinese central bank. Hence, the round of price declines offered an opportunity for downstream producers who previously stood on the sidelines to replenish stocks.
SMM believes copper market will experience small declines in view of higher purchasing interest at low levels, but the bull trend will slow, and copper prices will regain upward momentum in the coming week.
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