MARKET TALK: LME Base Metals Entering "Consolidative Phase"

LME base metals entering a "much needed consolidative phase" before resuming their longer-term upward trajectory, though nickel remains standout due to its extreme physical tightness, says Standard Bank. "With a lack of new money entering the complex, prices are likely to remain sluggish within a broad trading band for some time, especially given a U.S. market which has concerns as to the effects of subprime debt on the economy." Losses on Nikkei, HSI so far, DJIA overnight dampening sentiment in Asia: LME 3-month copper down $55 on London PM kerb at $6,165/ton, aluminum down $27 at $2,710, zinc down $5 at $3,215/ton; nickel +$25 at $43,600, untraded in Asia.