Network Metals LLC

There is some rumbling today about the effect swine flu may have on copper demand, but ultimately it seems like an excuse to bring back down copper prices that soared over the past few weeks – copper is sharply down at the writing of this note. There was and is not enough actual demand present, in our view, to support the gains copper has seen recently, and the stronger dollar and worldwide worry about the speed of recovery should help to bring things down to a more sensible level. That being said, we are also hearing some Chinese interest in importing copper from the US, which would certainly boost prices again. But it is hard to tell whether or not it is just more stockpiling creating the interest; after all China, as we like to say, is a black box when it comes to disclosure.