LONDON, May 10, 2010 (Dow Jones Commodities News via Comtex) -- The economic recoveries in Europe and the U.S. should support copper prices in coming months even though prices may be buffeted by speculative swings, Europe's largest copper producer Aurubis AG (NDA.XE) said Monday.
The sovereign debt crisis that has struck Europe hasn't jeopardized the region's economic recovery and demand for copper is increasing in the automotive, energy and consumer appliance sectors, Aurubis said in its monthly report.
"Since the beginning of the year, positive signs are coming from the end-user industries again after the prior-year slump," it said.
Aurubis said copper rod demand in the automotive and energy industries has been strong, while demand in the copper tube sector is stable.
"[It] would still be out of place to break into euphoria, because everything is currently viewed in the short term and whether the uptrend can be maintained remains to be seen, but the first steps towards that have been taken," the report said.
Aurubis said the U.S. market is showing "positive" demand signals but that China remains the main driver for copper. Though demand growth is slowing there as the government tries to cool the economy, consumption is still expected to grow robustly.
The copper producer also said the copper concentrate market remains in shortage, keeping treatment charges the miners have to pay smelters at low levels.