LME Copper to Recover US$ 6,000/t, SMM Official Forecasts

Overseas copper market seems to fluctuate in range of US$ 5,500-6,200 per tonne in near future, showed official of Sumitomo Metal Mining’s copper and rare metal division to Japan Metal Bulletin. Aluminium price at London Metal Exchange could approach US$ 3,000 per tonne again while decline to US$ 2,600-2,650 level, said official of Mitsubishi Shoji Light Metal Sales Corporation.SMM’s official suggested copper market could tighten soon when US housing starts seemed to hit bottom after adjustment and nickel and aluminium prices are in strong trend. He referred to another positive factor that is Chinese strong demand for copper. Chinese copper users are increasing purchase volume of electrolytic copper ingot when copper price at Shanghai market is about US$ 300 higher than LME, while they used copper scrap more than primary ingot due to cheaper Shanghai market than LME in 2006, he said.The official of Mitsubishi Shoji Light Metal Sales said backwardation of LME aluminium prices would increase by March 2007 and turn to decrease gradually. He suggested actual users might increase purchasing at less than US$ 2,650 level.