MARKET TALK: LME Base Metals Outlook "Confused"

The outlook for the LME base metals is "becoming confused," with stocks no longer falling across the board and a mixture of contangos and backwardations in the spreads, says BaseMetals analyst Will Adams. The recent changes in Chinese export taxes has led to a "rush of exports as traders tried to beat the tax deadline," but the secondary impact is likely to see exports slow, Adams notes. Consolidation is expected in the short term, likely at lower prices, but further strength is also seen, looking further ahead, he adds.