SMM Weekly Review and Forecast (Dec.3-Dec.7)

Copper:
As copper for December delivery on Shanghai Futures Exchange will
approach its delivery day soon, spot price is occurred high premium.
Consumptions have been stimulated, and transactions are very active.
Supply became tight in Shanghai market, which also supported the
price. The copper market will face wide range fluctuation in December.

Aluminium:
Aluminium on SHFE will maintain consolidation, fluctuating at around
RMB18,000 per tonne. Chalco raised alumina spot price to 3800 from
3500 on November 27, which became the main factor to support recent
aluminium price. As a result, spot price is forecast to be relatively
steady this week. Besides, the producing cost will limit price falling
trend and support the selling price, consumers also gain confidence
when steady price appeared. But be cautious to the chain reaction of
panic selling of copper and zinc might also impact aluminium.

Lead:
Lead in Shanghai market is not ample, and many smelters are not
willing to sell considering their producing cost, but transaction can
hardly succeed at relatively high level at RMB22,000 per tonne. As a
result, lead price is facing a dilemma. Wide range of fluctuation will
affect the expected supporting price level of traders.

Zinc:
In December, domestic zinc market will meet severe situation. Though
most larger smelters want to maintain selling price at RMB20,000 per
tonne, but panic selling appeared in the market and has broken the
"price alliance" soon. Whether supplier and consumers could agree with
a price level or not will depend on their capital situation in the end
of this year.

Tin:
Shanghai tin maintains in the price range of RMB144,000 to 147,500 per
tonne, weak volatility. As lack of demand, "Yunxi" and other famous
brand insist their selling price, which leads to an inactive market.
But with end of the year coming soon, facing capital pressure, some
tin producers and traders might lower the price to impact the inactive
market.

Nickel:
London Metal Exchange nickel for delivery in three months is falling
dramatically these days. In domestic market, more and more nickel is
imported, which impacts Jinchuan Group Co., Ltd to lower their
quotation. Price will continue to consolidate in order to face such
market situation, falling trend is inevitable. Consumption is still
dull.