With LME 3 month copper falling to $4,100 per metric ton last Friday it seems the market is worried about both current build up of stockpiles and the prospects for metal demand going forward.

Interestingly however, BHP Billiton says that there may be supply side problems due to a shortage of workers, cost pressures and equipment stress, which means supply may not be able react quickly to demand changes.

There always seems to be a problem of longish lead times with copper as well as other base metals. So perhaps we will see a surge in copper n the New Year as the market reassesses the demand supply relationship.

While commodity markets have taken a battering in the last month, the base metals sector could rebound once China and other BRIC countries start to pick up once more.

Remember China is still the world’s number one consumer and soon their mega infrastructure projects will start to suck in more of the metal, along with a revival in property and automobile markets.