MARKET TALK: Copper In $6500-$7500/Ton Range -Goldman Sachs

Copper prices are expected to drift within a $6500 a metric ton to $7500/ton range over the coming year, says Goldman Sachs, a $1000/ton rise from its forecast to the end of '08. Copper prices appear most correlated with the demand cycle and quicker-than-expected recovery in industrial activity, primarily outside the US, will pre-empt the rebuilding of a substantial inventory buffer, Goldman notes. A surplus of 190,000 tons in '07 and a virtually balanced market in '08 "will likely provide little reassurance to the market that any surprise on either supply or demand could be easily accommodated." LME copper is last at a 4-month high of $7035/ton, +1% overnight.