MARKET TALK: LME Copper Up Despite Cathode Supply In China

LME copper ticks higher on continued speculative, fund buying, eyes $8,000/ton despite evidence of good availability of copper cathode in China, says Singapore-based trader; "China has been buying strongly but such big imports that we saw over the first three months this year aren't normal. Copper cathode in the Chinese physical market is now at a discount of RMB500 to RMB600 ($64-$78) to the SHFE." Physical market needs to digest cathode before returning to premium to futures market. LME copper rally at risk of collapsing quickly should speculative, fund support wane. LME 3-month copper trades at $7,875, up $54 vs yesterday's PM kerb.