Network Metals LLC

Chinese markets are closed for today and tomorrow; this gives us a chance to catch our breath after such a varied couple of months for China. The enormous buying of base metals, especially of copper, by the Chinese SRB has given rise to bullish sentiment regarding base metals. For now, we are not inclined to believe that such optimism and high prices are sustainable, and that the Chinese are beginning to sell off copper makes us think they believe they have found a high at which to sell. We expect more of that copper to drift into the general market as the next few weeks go by, and at the same time our Chinese customers and sources are reducing their outputs in response to overall less orders. As the Chinese head into their possible seasonal slowdown, we also expect copper prices to see a substantial drop.