Weekly report on the non-ferrous metals markets in  China.
                 (Mar 30th, - Apr. 3rd. 98)

Copper:                                                                 

the domestic copper price oscillated at high level for correction  early
in this week, though the long positions kept strong, yet couldn't  resist
the squeeze from the sharp decrease  of  the  copper  price  at LME,   on
Thursday, the copper price dived to the lowest of 17,500 Yuan  RMB,   on
Friday, the July contract price closed at 17,580 Yuan RMB,  decreased  by
350 Yuan RMB.

From the trend of the domestic copper price this week,  the  weak  price
for the spot goods remains to be the  major  factor  keeping  the  copper
price  from  going  high.   The  forward  contract  was   holstered   by
the purchase from  the  speculators,   maintaining  the  relatively  high
premium over the physical goods, but as the copper price  slumps  in  the
international market this week, at last the domestic price  got  out  of
the impasse and moved down to the break-out point. With  the  arrival  of
more imported copper at lower price, the domestic  market  was  squeezed,
and as money was tight, the copper consumption was restrained,   thus  it
will not be optimistic from the fundamental aspects. 
     

Aluminium:                                                              

Influenced by the sharp decrease of LME aluminium price,   the  domestic
price kept lowering this week,but the trading and speculation was quiet
, lack of intervening funds. Since no improvement was made at present  on
the demand from the fundamental aspects in the  domestic  market,   with
the sharp decrease of the world aluminium price, the domestic  price  was
forced to go down continuously.

The aluminium price of the spot goods in SME fluctuated from 13, 610  to
13,900 Yuan RMB this week,and which closed at 13,750 Yuan RMB on Friday
, down by 150 Yuan RMB. the three-month aluminium price moved between 13
,780 and 14,400 Yuan RMB, which closed at 13,800 Yuan RMB, down  by  260
Yuan. It is predicted that the domestic aluminium price will  moderately
go down after the adjustment. The support point is at 13,600 Yuan RMB.