MARKET TALK: LME Copper Prices Soften As Inventories Gain

Copper prices continue to soften as inventories levels appreciate, says John Meyer of Numis. LME copper stocks rose 2,600 metric tons to 199,450 tons Monday. But prices may see some recovery as a forecast increase in consumption may outstrip supply for a short period, Meyer adds. Meanwhile nickel prices remain high but look vulnerable to a sudden correction if the overproduction of stainless steel causes steel producers to cut back, Meyer says. LME copper trades at $5,715 per metric ton, down from Friday's PM kerb of $5,750/ton, while nickel trades at $32,900/ton, up from PM kerb of $32,445/ton.