MARKET TALK: Volatile Trading Seen For LME Base Metals

Volatile trading in the base metals complex is likely in the short-term, but buyers should become increasingly confident too, says William Adams at BaseMetals. If further selling in copper and aluminum does not materialize then a rebound may gather momentum, Adams says. Copper and aluminum seem to be building a base, but with the rebalancing of the Dow Jones-AIG Commodity Index Fund still in the foreground, confidence may not be strong enough to encourage consumers to come back just yet, Adams adds. Copper trades at $5,665/ton, up roughly 1% from Monday while aluminum trades at $2,630/ton, up 0.7% from Monday.