Reuters reported that analysts moderated their downbeat views of copper prices in the final quarter of this year and in 2013 after central banks provided stimulus but they expect uncertainty over China to prevent a quick return to bullishness.

The 27 market participants surveyed last week called for cash copper prices to average USD 8,019.80 per tonne in 2012 rising to USD 8,267.30 in 2013. The forecasts are up marginally from a similar poll conducted in July.

The 2012 estimate is still down 9% from the average cash contract on the London Metal Exchange for 2011 at USD 8,812 per tonne. Cash copper was at USD 8,130 per tonne.

Benchmark three month copper futures on the LME sank to a 2012 low of USD 7,219.50 in June and they are trading up just 1% in the year to date. The contract posted its first annual decline in three years in 2011.

Industrial metals prices have just had a quarter of respite with copper gaining some 7% as markets benefited from monetary stimulus unveiled by leading central banks including the United States, Japan, China and the euro area. Additionally in September, China approved more than USD 150 billion worth of infrastructure projects.

Mr Nicholas Snowdon analyst of Barclays Capital said that "While much of the recent rally in base metal prices has been positioning related in the context of key policy events in both the US and Europe if we begin to see a commensurate improvement in economic data from those two key regions alongside China then the upside for the complex could be impressive."

Mr Snowdon said that but the stuttering global economy that necessitated those measures is still floundering with slowing growth in metal-consuming giant China proving a persistent drag on prices. While our base case is for activity levels to improve later on, there are a number of downside risks, especially given the time lag between pro growth policies and subsequent improvement in demand and stock overhangs for many metals in China.

Source - Reuters

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