China Copper TC/RCs Slump 70% in Half Year

BEIJING, July 8 -- Metals prices, which have risen 39 percent this year in London, will decline this quarter as re- stocking in China nears completion, according to UBS AG.
&nbsp;&nbsp;&nbsp; &quot;China's re-stock appears complete, whereas the Western World is unlikely to experience similarly strong restocking activity ahead of its seasonal summer slowdown,&quot; UBS analysts led by Sydney-based Glyn Lawcock said in a report dated yesterday. &quot;The magnitude of the recent metal price recovery has in our view been exacerbated by the re-entry of commodity index, Chinese and speculative funds.&quot;
&nbsp;&nbsp;&nbsp; The price of copper will drop 17 percent this quarter, nickel 15 percent and zinc 10 percent ahead of an &quot;economic recovery,&quot; later this year, UBS said. &quot;We now expect key commodity prices to enter the next cyclical upswing by late-2009 and to peak in 2011.&quot;
&nbsp;&nbsp;&nbsp; (Source: Bloomberg)