By Leia Michele Toovey- Exclusive to Copper Investing News

With the close of the Olympics last Sunday, the globe can now focus on metals beyond bronze, silver and gold. A metal that is a barometer for economic health - copper - is sure to at the centre of attention. Olympic host country China consumes over a quarter of the world’s copper, so all eyes are on the country to see what their post-Olympic appetite will be like.

What will happen to the Chinese economy in the wake of the US slowdown has been the focus of a great deal of stock market chatter recently. Despite curbing manufacturing in light of the Olympics,  last week calculations released by Reuters indicated that China had not gone into contraction-at least on copper demand.

China’s demand for copper inched higher in July from June, boosted by rising imports for financing and stocking up ahead of the post-summer demand revival.  Chinese demand was 409,492 tonnes in July, up 7,579 tonnes from June.  These figures were calculated by Reuters with trade data, domestic production statistics and Shanghai Futures Exchange stock pile figures. Demand had risen 10 per cent in May but was flat in June. Over the first seven months, demand grew 5.8 per cent, far slower than the 36 per cent surge in 2007. “In the case of copper, it is to be expected that Chinese importers will bring in more metal in preparation for the peak production season,” said Judy Zhu, commodity analyst with the Standard Chartered Bank.

Copper inventories in Shanghai Futures Exchange warehouses fell 12 per cent to 21,796 tonnes from 24,825 tonnes during the last week of the Olympics. Most commodities rallied on Thursday as the dollar softened with oil surging ahead 5 per cent. On Friday, the dollar recovered from its slide, rising in comparison to the other major currencies.  Today, Shanghai copper fell for the first time in four days after a jump in global stockpiles damped investor confidence in a rebound in Asian demand.

Friday Inventories monitored by the London Metal Exchange rose 4.6 per cent to 163,800 tonnes on Aug. 22, the biggest one-day gain since May 9 and the highest total since Feb. 11. Copper dropped 2.5 per cent in London on Friday. On Monday, copper continues to be affected by last week’s rise in stockpiles as a bank holiday today in England has inhibited a refreshed outlook.

Indian copper futures fell on Friday as the dollar strengthened and traders booked profits after the previous session’s rally. Benchmark August copper on the Multi Commodity Exchange of India was down 1.7 per cent at 332.9 rupees per kg. The weak rupee combined with a rise in copper shipments from Japan is extending support to copper prices. The Indian rupee was one of the currencies that weakened compared to the greenback.

Japanese copper wire and cable shipments rose one per cent in July from a year earlier, helped by robust export and auto sector demand. Furukawa Electric Company, a Japanese maker of wire and metal products, climbed the most in almost three weeks in Tokyo trading after the Nikkei newspaper reported that the company would increase monthly copper production capacity to meet demand. Furukawa rose 5.1 per cent to close at 533 yen on the Tokyo Stock Exchange, the biggest gain since August 6. The company, which has a 55 per cent share of the global copper foil market, said it will raise capacity by 30 per cent to 9 million square meters by next summer. The increase is necessary to help Tokyo-based Furukawa meet higher demand for lithium-ion batteries used in hybrid vehicles.