Copper traders increasingly bullish

Copper traders are bullish on the commodity for the fourth consecutive week, Bloomberg reports.

Demand for copper has continued to surge over the past few months, experts say. China is purchasing more and more of the metal, while a sustained economic recovery in the U.S. has also driven domestic demand for the alloy. Such a confluence of supply and demand fundamentals has eroded global stockpiles, sending copper prices rising since the beginning of the year.

Copper is largely used in construction and manufacturing, and demand is projected to remain robust over the coming months as economic growth heats up in emerging economies such as Brazil, Russia, India and China. Businesses are also increasingly purchasing the commodity, leading some companies to conduct procurement audits in an effort to streamline copper sourcing.

Copper inventories tracked by the London Metal Exchange fell to 289,000 metric tons on Friday, underscoring how quickly global supplies are eroding. Manufacturing in both China and the U.S. is continuing to grow, further bolstering demand for the metal.

On the New York Mercantile Exchange on Friday, copper futures for May delivery declined by 0.7 percent, settling at $3.90 per pound.