MARKET TALK: Short Squeeze May Push LME Copper Above $7,600

Mild short squeeze on LME copper likely to push 3-month contract to $7,600-8,000/ton range, says Shanghai-based analyst at major Chinese copper trader. Notes while China copper imports likely to decline in 2Q on dramatic jump in imports in 1Q, increasing levels of fund buying on LME will force large number of CTA traders to cover shorts; "there is a large amount of CTA funds in the range of 7,000 to 8,000 dollars per ton. Adds this should push SHFE copper futures up even faster to reduce difference between two; LME 3-month copper last at $7,360/ton, down $55 on London PM kerb.