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MEIR ON METALS: Commodities push higher despite Greek impasse

January 23, 2012 - 17:08 GMT Location: London

KEYWORDS: Ed Meir , base metals , copper , aluminium , zinc , lead , tin , nickel

Analyst Ed Meir looks at what is moving the metal markets on Monday.

Copper and general commentary: Metals lost ground on Friday, but losses were rather modest, except for copper, which dropped a substantial $145 per ton as it retreated from a four-month peak. A weaker euro pressured the group after a round of indecisive debt talks with Greece weighed on sentiment. In this regard, negotiators flew out of Athens empty-handed on Saturday, leaving behind a technical team to work on more details, but it is unlikely that a deal will be clinched before the current meeting of Eurozone finance ministers wraps up. From what we read, the talks have bogged down over the issue of how much of a coupon the new Greek bonds will carry, with Greece pushing for a 50 basis point reduction, while private bond-holders are sticking to their original offer of 4%. Existing bonds will be discounted by some 70%, higher than the 50% haircut that was initially...

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