Heavy short-covering activity by short position holders will also prompt a price rebound, analysts said. Many LME dealers said they noted a similar price movement in LME copper during the same period last year. A series of sharp price declines in mid-September resulting in record-low prices had triggered output cuts by miners and short-covering by funds. Analysts and other market participants are expecting a repeat of that scenario this year, in view of the large amount of short positions held by fund managers and speculators.
NSTL
