London, 27 May 2011

Just a Blip on the Radar?: After a sharp fall early in May, copper prices have remained below $9,000/t. With this change in market reality, there is a growing sense in the financial community that there is at least as much downside potential for copper as upside.

The more sober outlook applies to the pricing of mining equities as well as the red metal itself. The trading of Glencore stock at below the fairly modest offer price after its recent listing is far from encouraging. Others, including Vedanta with its planned flotation of KCM, are keen to pull forward any proposed sale of stock to help ensure strong pricing.

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Bloomsbury Minerals Economics Ltd

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