MARKET TALK: LME Copper Eyes Return To May '06 Highs

LME copper is poised for fresh gains with an expected return to highs above $8,800 a metric ton, last seen in May '06 says BaseMetals analyst Will Adams. The recent sell-off down to $5,240/ton was over-extended on the downside and initiated shorts which are now being covered, Adams notes. Short-covering, trade buying and restocking, as well as investment buying, are now "powerful forces that could drive prices considerably higher." LME copper trades at $7,870/ton, +3% from Wednesday's low.