Copper declines despite strong Chinese demand forecasts

Copper prices fell today even as the dollar gave up ground against most rivals and on expectations of strong Chinese demand. 

City Bank analysts said China will increase demand on copper, in turn boosting global demand, with its crucial rule in car making still vibrant. 

Analysts believe that some countries will tighten their air quality regulations in the future, in turn boosting demand on electric cars and metals used in them such as palladium and copper.  

City Bank expects prices to hit $6,500 this year on increased Chinese demand estimates by 2%. 

The dollar index fell 0.2% to 96.9 with an intraday high at 97.2, and a low at 96.8. 

Copper declines 0.9% to $276.3 a pound, with an intraday high at $279.6, and a low at $276.2.