Copper climbs 7% in London despite continuing demand woes

LONDON.- Copper closed with a significant gain of 7.43% today at the London Metal Exchange after trading for US$ 1.51137 per pound, compared to US$1.40682 on Monday and US$ 1.39298 on Friday.

Nevertheless, the surge is only expected to be short-term due to demand concerns.

With today's closing price, the monthly and yearly average increased to US$1.43706.

Today's value is the highest for the red metal since December 4th of 2007, when it traded for US$ 1.52430.

Metal prices dropped more than 50% in 2008 due to weakened global demand and growing inventories.

"I don't think that we are looking at the beginning of a sustained price recuperation until we see signs that the world economy is indeed on its way to recovery", stated Yingxi Yu, who is an analyst for Barclays Capital in Singapore.