MARKET TALK: LME Copper Showing Signs Of Restocking?

LME copper nearby spreads tighten in recent days during a time of weak prices, suggesting either short-covering by shorts who are range trading, or scale down buying interest by traders seeking nearby metal, says Will Adams at BaseMetals.com. The move in spreads may tie in with the jump in canceled warrants, up a net 8,550 tons Monday. "Could it be that metal is going to head back to China after their multi-month destock?" Adams says. "Perhaps with prices now $1,000-$2,000/ton below the levels seen between May and October, the price is attractive enough to restock." LME 3-month copper last trades at $6,725/ton, up $60 on the Monday PM kerb.