The fundamental outlook remains weak, given the downturn in housing and industrial sectors.
As existing momentum of ongoing projects slows, rising inventories could result in downward pressure on copper prices.
It's important to remember that although prices have corrected sharply from their 2008 highs, they have still risen substantially since early 2003!!!
Industrial commodities (read: base metals and steel) could face strong headwinds in the second half of 2008 as companies in this sector struggle with debt servicing and weak product prices as their customers in vital industries like housing and autos face slowdowns of their own.
Can Chinese copper buying continue, given rapidly slowing consumer consumption numbers in their export markets (US and Europe)?
We're not out of the woods yet!!