MARKET TALK: LME Base Metals Correcting, Collapse Unlikely

LME base metals likely to continue to correct following last week's rallies when China, Japan absent from market, but sentiment steady, should support prices at current levels, says trader at Japan house. "I personally don't think the market will collapse that easily." While fundamentals for most metals not extremely strong, large funds still in market looking to push prices higher in 2Q, which should lead to much higher "spike" in prices this quarter, he says. Most LME base metals slightly softer in thin trade, narrow ranges, on follow-through selling after overnight declines in all metals except nickel. LME 3-month copper down $40 from London PM kerb at $7,840/ton; aluminum down $5.50 at $2,832; tin +$5 at $13,800; other metals untraded.