SHANGHAI, Jan. 20 (CBI China) – Affected by the rumor that State Reserve Bureau will purchase copper for the national reserve from the overseas markets, overnight LME copper took the lead to rise in base metal market, overnight three-month LME copper increased by over 2.5%, while LME aluminum fell again, overnight three-month LME aluminum closed at USD 1425/mt, down USD 45/mt, and reached the new low at USD 1409/mt since September 2003 during the trading; the inventories increased 51,875 mt, and the total inventories reached 2.53715 million mt.
On the one hand, the inventory increases had big pressure on LME aluminum; on the other hand, the economic crisis caused no confidence from the long in LME aluminum. After short time of fluctuations, LME aluminum might fall further. During the Spring Festival holiday, the international hot money may cause trouble again. Domestic aluminum prices have a sign of decline following the LME aluminum trend, and the prices are expected to fluctuate in the RMB 11,000-12,000/mt range before the Spring Festival.
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