Lower '08 Base Metal Demands; Copper, Aluminum Will Outperform

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In a recently published analysis, UBS Lead Analyst Joachim Klement suggested the slowdown in the U.S. economy will lead to a fall in commodities demand, "especially crude oil and copper as the U.S. is amongst the largest consumers globally.

UBS Lead Analyst Joachim Klement recently stated that he felt the base metals price outlook for next year was weaker as the slowdown in the U.S. economy is expected to result in a drag in demand although he expects "copper and aluminum to buck the trend and outperform the complex."

However, he warned, "a crucial factor in the near future could be measures taken by governments aimed at environmental protection by curbing energy intensive industries," noting that China and Indonesia are already "initiating steps in this direction."

In a recently published analysis, Klement suggested the slowdown in the U.S. economy will lead to a fall in commodities demand, "especially crude oil and copper as the U.S. is amongst the largest consumers globally. Historically, the performance of industrial metals mirrors U.S. industrial production. Slowing industrial production could severely dent the demand for commodities."

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