MARKET REVIEW OF THE SHFE DECEMBER 2002

Due to the uncertainty of the US economy, a possible US attack on Iraq and the soaring crude oil price, the copper futures prices of the SHFE sharply dropped in December. Some contracts broke through the pivot point of RMB16,000 yuan per ton. The most active contract 0305, after hitting the low of RMB15,780 yuan, closed the month at RMB15,960 yuan per ton, down 690 yuan from the end of last month. Other key contracts lost 400 to 700 yuan.

The aluminum futures prices of the SHFE followed the copper market. The most active contract 0305 ended up at RMB13,600 yuan per ton, down 320 yuan from the end of last month. Other key contracts went down 310 to 650 yuan.

Bolstered by the domestic spot market, the natural rubber futures of the SHFE bucked the trends of metals market, with all rubber contracts stepping up to about RMB11,000 yuan per ton. The most active contract 0303 gained 380 yuan to RMB10,900 yuan at the end of December. Other key contracts went up 575 to 890 yuan.