December 2010 International Nonferrous Metal Market Price Summary

The U.S. Department of Commerce announced that the US gross domestic product (GDP) in the third quarter of 2010 grew 2.6% year-on-year, higher than the previous two forecast increases, and other positive economic data released by the United States also consolidated the economic recovery and recovery. The idea that the pace may improve. At the end of December last year, tensions between the DPRK and South Korea eased and market sentiment eased. At the same time, the U.S. dollar index was due to a large increase in the auction of U.S. government bonds. The People's Bank of China decided to increase the benchmark interest rate of financial institutions since December 26, 2010. Once again raising interest rates boots landing, driving the non-ferrous metals in the international market fluctuated within a narrow range. Affected by the sharp rise in copper and nickel prices, the LME non-ferrous metal price index reflecting the non-ferrous metal price level in the international market in December was 3,982 points, up 4.3% from the previous month. Among them, the price of copper rose by a large margin and reached a record high. The price of nickel rose by about 5%, and the remaining metals fluctuate within a narrow range.

Bronze: As the dollar weakened and concerns about Chile's supply, Lun Copper had hit historical highs several times during Christmas holidays. On December 29, 2010, Lun Copper broke through the $9,400/t position, reaching a record high of US$9437.5/t. In December 2010, the spot price of copper on the London Metal Exchange (LME) averaged 9087 U.S. dollars per tonne, up 7.4%; the average monthly average price of copper in the LME3 was 3,041 U.S. dollars per tonne, up 7.1%. According to data released by the National Bureau of Statistics of Chile, due to the occurrence of a large mining company in the country, Chile’s copper production in November 2010 fell 0.3% from the same period last year to 467478t. The market is generally expected that demand will exceed supply in the next year, but the sharp rise will also accumulate a large downside risk for the later period. At present, as most investors and traders are absent from trading, the volume of copper remains scarce. Some analysts believe that the current copper price has exceeded the fundamental support, which will make the price fluctuations larger.

Aluminum: LME aluminum spot price was $2341/t, up 0.7%; LME 3 months** averaged $2356/t, unchanged. RUSAL said that due to the reduction of output by Chinese smelters and strong global demand, aluminum prices are expected to reach $2,500 per t2 in 2011. The report predicts that global aluminum demand will increase by 8% year-on-year to 43.8 million tons in 2011, and China will become a net importer of aluminum. Given the strong demand in China and other regions, the spot market price of alumina may reach $400/t.

In December 2010, China Aluminum's alumina contract price was 2900 yuan/t, unchanged.

Lead: In December 2010, the average spot price of LME lead was US$2,392/t, up 0.8% from the previous month; ** The price was US$2,401/t, up 0.3%. At present, the demand for downstream lead-acid battery companies is generally low, resulting in the lack of active supply of downstream products. Currently, the trend of lead prices in the international market is still unstable. However, in the short term, since the price of metal was adjusted in November 2010, the price of copper has exceeded US$9000 and reached a record high. Relatively speaking, the price of lead has a compensatory demand.

Zinc: Due to the profit-taking of investors before Christmas, the average spot price of LME zinc in December 2010 was $2267/t, a decrease of 1%; **The price was $2277/t, a decrease of 1.5%. At present, the fundamentals of the global zinc market are still facing greater pressures of oversupply, and it is difficult for zinc prices to rise sharply. In the short term, the concussion pattern will continue.

Tin: In December 2010, the average spot price of LME tin was US$26,007/t, up by 2.2% from the previous month; **The price was US$25,993/t, up by 2.1%.

Nickel: As the market is concerned about tight supply, and China has announced strong import demand, international nickel prices have shown slight fluctuations throughout the month. The average monthly LME spot nickel spot price was US$24,074/t, up 5.5% from the previous month; **The price was US$24,123/t, up 5.4%. At the end of the month, nickel prices in London closed at 23,845 U.S. dollars and the cumulative increase last year reached 29%. Domestic Jinchuan Company raised the ex-factory price by 3,000 yuan/t again, and the market price was around 183,000 yuan/t. According to the statistics of the World Metals Statistics Bureau, the global nickel market was in short supply of 6,800 tons from January to October 2010, and the surplus was 28,100 tons in the whole year of 2009. In the first ten months of 2010, the mine output totaled 1.19 million tons, an increase of 4.5% over the same period of last year. %.