MARKET TALK: 07 LME Metals Demand Dn On GDP Growth Drop

The London Metal Exchange base metals will be in small surpluses in 2007 on the back of a 0.8% reduction in global real gross domestic product growth, says Goldman Sachs. This drop in growth will lead to a 250,000 metric tons reduction in the pace of aluminum demand, a 125,000 tons fall for copper, 4,000 tons for nickel and 70,000 tons for zinc, Goldman notes. This estimate includes assumptions regarding factors such as stock building and supply growth.