MARKET TALK: Copper Demand Adjustment Nears End

The worst of copper's "demand adjustment" stemming from the US housing market correction will soon be over, and tighter market conditions will prevail in the first half of 2007, says BMO Capital Markets. "Markets are concerned that moderating demand growth may lag behind mine output next year," BMO Capital Markets adds. LME copper fell to an eight-month low Wednesday as rising inventories and slower US growth triggered a round of profit taking ahead of year end. LME copper trades at $6,480/ton, down a further $100/ton overnight.