LONDON copper prices rallied to a 16-month peak on Tuesday after the Christmas break, chasing gains made in Shanghai over the holiday period.
"The strength in copper is likely to continue at least through January, as the sentiment is very optimistic and so far there doesn't seem to be any major news that would alter the trend," analysts have said.
"Investors are paying very little attention to fundamentals these days - it's mainly the investment demand that's pushing copper prices up. Spot copper isn't selling well, consumers still think the current prices are too high."
London Metal Exchange copper jumped 2.7% to $7,260 from Thursday's evening evaluation of $7,070, after a four-day hiatus. Copper earlier touched $7,270, its highest since early September 2008.
Worries about the 42% rise in LME stocks and the 485% surge in inventories in Shanghai this year could be soothed a little after workers at the two large Chilean operations voted to strike.
The vote at Chuquicamata threatens output of around 4% of the world's copper concentrate, while the vote at Xstrata's Altonorte smelter could cut 1.5% of global output of copper anode.
