Japan Trade House Expects LME Aluminium Price to Keep Steady

Mitsubishi Shoji Light Metal Sales Corporation forecasts primary aluminium ingot price at London Metal Exchange would keep steady at US$ 2,650-2,850 per tonne for 3-month futures for a while. LME zinc price is expected to fluctuate in narrow range between US$ 3,500 and US$ 4,200 per tonne for 3-month futures in January-March 2007.LME primary aluminium price declined to US$ 2,550 per tonne at the beginning of January 2007 and seemed to weaken more. However, the price rebounded to the high level thanks to the increase of backwardation.World primary aluminium supply is forecasted to become surplus against the demand in 2007. On the other hand, aluminium market price could fluctuate widely along other technical factors such as speculative fund movement. Totally Mitsubishi Shoji Light Metal Sales Corp expected LME aluminium price would follow strong trend since late 2006 for a while.The firm forecasted down trend for LME zinc price while expected the price would not drop down instantly supported by actual demand. LME zinc price is supposed to decline slowly from US$ 5,000 to US$ 2,900 toward late 2007.