MARKET REVIEW IN MAY 2002

In May, SHFE copper futures fluctuated within a narrow range in most trading days, due to the relatively positive USA economic data and a supply surplus in the international copper market. However, the three-month LME copper price soared over US$1,660 per ton from US$1,620 stimulated by the announcement of an 80 thousand ton production reduction from the world mining giant BHP Billiton, and thus bolstered the domestic copper prices to higher levels at the end of the month. The most active ten-month contract closed at 16,360 yuan per ton after ranging from 16,030 to 16,520 yuan, up 180 yuan from the end of last month. Other key contracts ended up 150 to 180 yuan higher.

Failing to gain impetus from the copper market, SHFE aluminum futures technically fluctuated within a range. The most active nine-month contract closed at 13,530 yuan, down 100 yuan from the end of last month. Other key contracts finished 50 to 110 yuan lower.

SHFE crude rubber futures were blazing in May, owing to a supply shortage in the market. Supported by forward buying, the most active ten-month contract closed at 8,435 yuan, a sharp increase of 610 yuan. Other key contracts ended up 230 to 735 yuan higher.