China may lose position as copper price driver

China has in recent years been viewed as the main driver of the global copper market, and while its influence remains strong, it is possible that the rest of the world will take over in the short term.

Copper is currently one of the more divisive commodities among analysts, with opinions split over whether the industrial metal will continue its recent rally or lose ground over the rest of the year.

The point is that considerable uncertainty exists over copper's direction and much of that comes down to whatever view is held about the economic outlook for China, which consumes roughly 45 per cent of the world's copper.

While this is obviously a huge chunk of the market, it still means the other 55 per cent could exert a bigger influence, especially if its demand trend is changing.

London copper prices gained 3.4 per cent between August 14 and Tuesday's close of US$7,054 a tonne, although they are still down 4.2 per cent since the start of the year.

The recent gains have largely been attributed to an improving outlook for growth in the United States and hopes that Europe may take steps to stimulate its struggling economies.