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As reported on February 20, overnight metal futures closed slightly higher, after macroeconomic concerns that resurfaced this week had previously pushed prices lower. Barclays Capital stated that the recent rise in metal prices driven by improvements in forward indicators such as the Baltic Shipping Index is not yet mature. Some metals, particularly aluminum, have a fragile upward trend and may reach new lows during this downward cycle. Barclays Capital says that, driven by the expectation of another significant increase in aluminum inventories, it believes aluminum prices could test the lows seen in 2000. At the same time, it was noted that despite the significant increase in inventory levels, copper and aluminum prices remained unchanged from the previous month, suggesting that a large amount of negative news has already had an impact on prices. From a market structure perspective, there are still a large number of short sellers present; therefore, the metal market is prone to significant short-covering activities, indicating that volatility will remain the dominant trend in the market. LME three-month copper rose by $55 from the previous day’s close, reaching $3,290 per ton, while three-month aluminum increased by $13 per ton, reaching $1,349 per ton. Haixin Steel Information Network (http://www.hxsteel.cn) Last edited by yutr on 2009-2-20 14:59 ]