MARKET TALK: Copper Price To Slide More S/T - ABN AMRO

Copper price likely to continue weakening in coming months, before recovering by end of year on supply tightness according to price model of ABN AMRO Morgans, says analyst Michael Knox. Notes copper after recent losses no longer overvalued, but suspects prices overshot during 2006 price rallies, needs to retrace to lower levels below model's equilibrium price of $5,828/ton as of Jan. 10. Estimates copper's stocks to ratio consumption rose to 1.57 weeks in December 2006 from 1.12 weeks in July 2005, yet still well below ratio of 5.9 weeks in March 2002. LME 3-month copper last at $5,570/ton, down $60 on London PM kerb.