LONDON, Jun 15, 2010 (Dow Jones Commodities News via Comtex) -- The recent volatility in copper prices is "not unusual" but descriptions of it as a market crash were unfounded, Germany's Aurubis AG (NDA.XE) said Tuesday.
The German copper producer, Europe's largest, said funds liquidating positions have been behind the volatile price moves amid a flight to safety during uncertain economic times.
"The aversion to risk is naturally extremely high at present and uncertainty continues in the entire economic environment, but was this choice of terminology (expressions like collapse and crash) not too shortsighted and exaggerated?" the company said.
"The latest price changes are thus certainly not unusual and hardly out of the ordinary. There have also been no negative developments macroeconomically that are really new."
The copper market slumped during the global economic downturn as demand in its key consuming areas of housing and construction were hit, but staged a dramatic recovery last year and through the first quarter of 2010. Prices nearly trebled to peak at $8,043 a metric ton in March but then slumped amid a fears of contagion from the eurozone sovereign debt crisis.
But according to the producer, economic trends in both China and Europe are turning positive and "speak in favor of continuing good demand" for copper.
"Even if the assumption should be confirmed in the course of the year that China is covering its copper demand this year from its own increasing output and, above all, the reduction of national and regional stocks, this provides a reason for why there will be further purchases on the international market next year," the company said.