MARKET TALK: Copper To Recover S/T Before Resuming Downtrend

Copper prices likely to be volatile short term, will bounce higher towards $5,800 before resuming recent downward trend, says CBA. LME 3-month copper last at $5,525/ton, +$55 on London PM kerb, down 9.7% from start of year. Notes copper's sharp fall "has taken much of the froth out of the market and reduced long positions in the market," making recovery likely, especially if China's demand strengthens. Adds, recovery to be short-lived as market no longer in supply deficit, LME stocks rising more often than falling, mid-year target near $5,400, before falling in 2008 toward $5,000.