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Metals to continue to decline near-term - Commerzbank

FXStreet (Córdoba) - Over the past few days, base metal prices have declined somewhat and according to Barbara Lambrecht, analyst at Commerzbank, this correction looks set to continue in the near term, even though the trend of supply and demand argues for higher prices.

Key Quotes

"Last Friday, the index of the London Metal Exchange still stood around 10% above its low for the year. However, with economic data in China and the USA disappointing of late, base metal prices have come under pressure".

"Copper prices are now trading well below USD 7,000 per tonne, down 4% from mid-July. Given the strong optimism of speculative investors on the copper market, we had warned that a correction was looming, which should continue in the week ahead".

"Medium term, however, the majority of base metal prices ought to rise further, given the tightening of the demand/supply situation in most markets".

"But for nickel prices, which are currently up by as much as 33% compared with the beginning of the year, we see no further upside potential".

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