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MARKET TALK: LME Copper, Zinc Should Recover On Fundamentals

Monday, Feb 05, 2007
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Given firm fundamentals, U.S. economy passing "worst period," LME copper, zinc should recover from Friday's slump on fallout from Red Kite losses, says senior trader; "short-term we might still see more liquidation on stop-loss orders and technical momentum but fundamentals are turning better." Notes strong China demand should help copper stay above $5,000/ton but zinc prices still "very high" and there's uncertainty over fair value. LME 3-month copper last at $5,350/ton, +$5 vs Friday PM kerb; zinc unchanged at $3,080.

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