Jinchuan Group Cuts Refined Cobalt Prices to RMB 375,000/mt  

SHANGHAI, May 18 -- Copper rallied from the lowest price in more than three months, and aluminum and zinc jumped, on speculation the 9.4 percent plunge in prices in the past two days overstated the risk from slowing demand in China and Europe.
Three-month delivery copper on the London Metal Exchange climbed as much as 2.8 percent to $6,650 a metric ton, and traded at $6,635 at 2:01 p.m. in Shanghai. The metal tumbled 6.6 percent to $6,470 a ton yesterday, the lowest close since Feb. 8. Aluminum increased 1.8 percent to $2,025 a ton and zinc gained 1.5 percent to $1,928 a ton.
The LMEX Index of six industrial metals dropped 9.4 percent in the past two days to 3,025.5. The Reuters/Jefferies CRB Index of 19 commodities fell to a seven-month low on speculation efforts in Europe to curb government debt will erode economic growth and China may step up measures to reduce asset bubbles.
&quot;The slump yesterday was too big and too fast, and might not be justified by fundamentals,&quot; Li Ye, an analyst at Minmetals Star Futures Co., said from Shenzhen. &quot;Such an excessive plunge would be followed by a rebound.&quot;
LME-monitored inventories of copper used in homes and power grids have shrunk 3.6 percent this year because of increased imports by China, the world's largest consumer.
While economic uncertainties remain in Europe and China, &quot;there have been few signs in terms of immediate feed-through into weaker physical market conditions,&quot; analysts led by Gayle Berry at Barclays Capital said in an e-mailed report. LME inventory trends remain supportive except for lead, they said.
Physical Demand 
Copper for August delivery in Shanghai slumped as much as 3 percent to 52,000 yuan ($7,616) a ton, the lowest price since Feb. 9 and traded at 52,620 yuan at midday. Shanghai aluminum fell as much as 1.8 percent to 14,900 yuan, the lowest level since Oct. 19, and zinc plunged as much as 5.6 percent to 15,230 yuan, the lowest price since Sept. 30.
Shanghai copper showed resistance to &quot;the overnight slump in London as it didn't match gains overseas earlier in the year either,&quot; Li said. Shanghai prices were more reflective of supply and demand, while the LME prices had been too &quot;speculative,&quot; she added.
Nickel gained 0.5 percent to $20,800 a ton, lead increased 0.6 percent to $1,816 a ton and tin added 0.4 percent to $17,250.
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