SHANGHAI, Jan. 13 (CBI China) -- The impact of commodity Index adjustment on the base metals market gradually faded; the natural gas dispute among Russia, Ukraine and Europe was also basically solved, the energy crisis was settled down temporarily; the upcoming of all kinds of bad economic data began to suppress the market confidence, and the previous sharp increase in base metals propelled by the fund has dropped. LME nickel and LME copper experienced largest declines, while LME aluminum prices fell slightly, overnight three-month LME aluminum closed at USD 1520/mt, down USD 50/mt. LME aluminum prices are expected to be after other base metals in the future. Relatively speaking, domestic prices fluctuated strongly, the oversupply of refined aluminum in January was eased due to the rumor of State Reserves of aluminum, but the prices at RMB 12,000/mt and the high ratio between domestic and foreign trading were not the reflection of the actual fundamentals. The SHFE aluminum prices are expected to fall with little possibility of sharp decline in January.

Copyright © 2008, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040