It will be interesting to see if copper prices hold their current levels in the coming weeks. I have less confidence of that than I do in nickel. Nickel prices have fallen far more, and I think the outlook for building construction and consumer items would have to be more secure than copper use. The dynamics for copper supply are a little tighter though, however I would not be surprised to sell a short term sell off to $5,1oo/tonne. Its a huge fall, so its not a position I would trade. It might well stay above $7,000/tonne. I dont have any empirical evidence to suggest this market will fall, just that its vulnerable. The other reason for caution is the extent of trading in copper as a financial instrument.Andrew Sheldon www.sheldonthinks.com
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