3 May 2006
Copper treads water awaiting developments, other metals follow
: "The metals put in a mixed day, largely sitting on the fence as if waiting to see which way prices break. Although the trends are still overall heading higher and the bulls have been dominant since last July, the market seems to be showing some nervousness. Is it worried by the threat of higher exchange margins, or the fact that the ICSG forecasts a supply surplus of 240,000 mt this year, or perhaps by the realisation that demand is being hit by substitution? In which case it maybe wondering how much longer can it realistically justify holding at these near-record levels, especially if there is the potential that China is looking to touch the brakes of the economy. "