MARKET TALK: Base Metals Close To Peaking, Except Zinc

Base metal prices with exception of zinc close to peaking, says Macquarie; raises copper supply forecast for 2007 to around 260,000 tons from 150,000 tons previously. Notes zinc maintains sizeable deficit at 118,000 tons for 2007, but confirms expected "reasonable" surplus for 2008 of 206,000 tons, 180,000 tons for 2009 relieving upside price pressure; adds LME stocks at only 3.5 weeks of consumption with no obvious upper price limit. Pegs 2007 average at 190 cents per pound up from 148.4 cents in 2006.