Japan Industry Expects LME Copper Price Rebound in February

Japanese copper industry expects copper price at London Metal Exchange (LME) would hit the bottom at around US$ 6,200 per tonne and rebound to around US$ 7,000 in a short term, according to survey questionnaires to smelters and dealers by Japan Metal Bulletin.Yoshihiro Nishiyama, director of Pan Pacific Copper which is Japanese largest copper smelter, forecasts LME copper price would fluctuate in the range at US$ 6,500-7,500 per tonne in a short term. LME copper price was expected to exceed the record price marked in May 2006 temporarily and peak out, he said, but the estimation should be reviewed downward along the recent market condition. He pointed out speculative funds are being away from base metals market with concerns the demand for nonferrous metals might decline due to the economic stagnation. However, he expected speculative funds could return since LME copper inventory maintain the very low level.Yasuo Tanaka, director of Mitsubishi Corporation Futures & Securities, Japanese major nonferrous metals dealer, expected LME 3-month copper price would hit the bottom at US$ 6,200-6,300 per tonne and rebound. Copper price is currently impacted by confusions in financial markets. However, he described, LME copper could hit the bottom within February with effects of US economic measures. The highest price would be around US$ 7,000 in a short term capped by the decline of US housing demand.