http://www.business-standard.com/article/markets/copper-rallies-on-strong-global-outlook-113021100383_1.html

"Global equities and commodities have been rallying since the last quarter of 2012, following signs of global recovery and liquidity infusion by major central banks. Copper has been no exception.

Prices, currently around $8,250 on the London Metal Exchange have rallied 3.5 per cent this year. For more than one reason, we feel this rally in copper prices has more steam left. China, the largest metals consumer, has managed sustained economic recovery. China’s demand for copper is expected to grow 10-11 per cent and global demand is expected to grow 3.5-4 per cent in 2013. More, the gradual recovery in the US, led by its housing market and household savings rate, are only expected to gain momentum, while the contracting Euro zone economy has seen increasing consumer sentiment in the past six months.

Investors who believe the global economy has hit a bottom have piled into base metals exchange-traded funds (ETFs). Over the last few years, copper has gained a prominent place among risky assets, along with silver. Assets in ETF Securities' physical copper fund have nearly tripled to $47.5 million in the two weeks to January 24. At present, the ETF Securities physical copper fund has 6,013 tonnes of in storage. The recent SEC approval to JP Morgan’s physical-backed copper ETF has the potential to become very large, as it can store LME copper worth $499.8 million, equivalent to about 62,000 tonnes at $8,000 each. More, there are other ETFs waiting in the wings for SEC approval. This leads us to believe the investment-driven demand for copper is likely to strengthen the current uptrend..."