SHANGHAI, Dec. 5 (CBI China) -- The European Central Bank (ECB) cut interest rates sharply by 75 basis points overnight, slightly higher than market expectations, while the Bank of England cut interest rates by 100 basis points at the same time. Central banks in Europe jointly reduced interest rates reflected the European economy has plunged into serious recession, impacting investor confidence in the market, and the full-scale decline of basic metals prices remained. Overnight three-month contract of LME Aluminum closed at USD 1,570/mt, sharply down USD 50/mt; inventory increased by 19,500mt to 1.8588 million mt. It is difficult for SHFE Aluminum to get rid of decline in recent days, main contracts will hit RMB 10,500/mt, the market seems cautious about buying more below RMB 11,000/mt. After consecutive plunge in prices, market need to consolidate for some time, but in medium-term, it seems not reach the bottom line yet.
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: firstname.lastname@example.org or tel:86-21-51550040