MARKET TALK: Copper Needs Catalyst To Extend Rally - Trader

Copper futures on LME, Shanghai Futures Exchange need fresh catalyst to move higher, otherwise likely to sideways trade or retreat slightly short term, says Shanghai-based trader at major Chinese copper trader. Notes China's physical market still in surplus, which could extend into 3Q, weigh on SHFE copper, although its weakness may not pressure LME copper. Adds, sentiment on LME copper slightly stronger due to different investor profile, strong technicals, but after rallying sharply last week needs to build base, lacks fresh supportive news to tackle last May's record high $8,800/ton. LME 3-month copper continues to recover, last at $8,068/ton, +$18 on London PM kerb.