1#bare bright 62400-62600 +200 copper cathode(domestic standard) ＊ 71400-71600 +400

clean cable nodules 62800-63000 +200 copper cathode(domestic standard) 64000-64200 +400

candy 61600-61800 +200 oxygen free rod 8mm 65100-65300 +400

tube of copper radiators(clean) 60700-60900 +200 low-oxygen copper rod 8mm 64200-64400 +200

USA 2#copper (94-95%) 59300-59600 +200 copper wire (1.13-2.52mm) 65000-65200 +200

2#copper(92-93%) 57800-58100 +200 copper wire2.6mm 64800-65000 +200

motor copper(91-92%) 56900-57200 +200 H65copper strap(0.3-0.8mm,y2) 60200-60500 +200

shredded copper (91-92%) 56400-56700 +200 H62copper strap(0.18-0.25mm.y.y2) 49400-49700 +100

shredded copper (89-90%) 55000-55300 +200 rod brass(14mm-120mm) 40000-40200 +100

chopped copper nodules（90-92%） 55600-55800 +200 clean copper clippings 62000-62200 +300

mixed copper scrap（79-81%） 46800-47000 +200 high grade phosphor copper clippings63700-63900 +300

USA honey (Fe﹤2%) 38800-39000 +100 tinned phosphor-copper clippings 59400-59600 +300

shredded brass (Fe≤3%) 36800-37000 +100 tinned brass clippings 39400-39600 +100

H59 honey (impurity rate ≈7%) 35800-36000 +100 65 brass clippings（clean） 46300-46500 +100

USA brass radiator 37500-37700 +100 62 brass clippings（clean） 44500-44700 +100

shredded brass radiator 30300-30500 +100 Al/Cu radiator (Cu≈45% Al≈53%) 32200-32400 +100

irony al/cu radiator 29500-29700 +100

domestic A00 (delivered to factory) ＊ 16680-16780 + 30 Al ingot from Chalco (south China)＊ 16700

Alumina ＊ 2850-2950 electric alum rod coil9.5mm ＊ 17200-17300

import 6063 extrusion 13700-13900 electrophoresis alum profiles 22100-22300

domestic clean 6063 extrusion 13850-14050 spray-painting alum profiles 21600-21800

domestic 6063 extrusion scrap 13100-13300 frosted alum profiles 20700-20900

clean tablet( litho sheet) 13850-13950 Al ingot(made by Al radiator) 14650-14850

aluminum from radiator(85-87%) 11700-11900 EC wire 14600-14800

bulk UBC 11200-11400 clean Al from ACSR 14550-14750

Zinc,Lead, Tin

nanhua brand 0#zinc ＊ 19700-19900 +200 1#tin ingot(yunnan) ＊ 200000-202000+1000

electrolytical 0#zn (Guangxi, Yunnan) ＊ 18050-18250 +200 1#electrolysis lead ingot ＊ 17750-17950 +150

electrolytical 0#zn (Guangxi, Yunnan)17050-17250 +200 clean lead sheath from cable 14700-14900 +100

electrolytic1#Zn(yunnan, guangxi,hunan)16950-17150 +200 shredded lead (large size) 14300-14500 +100

Alloy

high grade alum alloy ADC12 ＊18200-18400 3# zinc alloy ＊ 19100-19300 +200

standard alum alloy ADC12 16700-16900 5# zinc alloy 17400-17600 +200

alum alloy 7# 15700-15900 shredded zinc（84-86%） 14000-14200 +200

shredded tense (Al 93-95%)＊ 15400-15600 shredded taint（90-92%） 13000-13200

shredded tense（91-93%） 13600-13800 import 6061 aluminum extrusion 12450-12650

Copy right 2006. All right reserved. No part of this publication may be reproduced or transmitted by any means without written permission of the publisher.

South China(Nanhai)Note : prices with the mark "＊" include tax invoice cost April 6, 2011 RMB/T,1ton≈≈≈≈2204.62lbs

Aluminum

Stainless steel

1# Jin Chuan nickel plates ＊ 192000-193000-1500 304/2B Rolling sheet0.4mm(Zhangpu) 24900-25000 -100

316 stainless steel scrap 22500-22700 304/2B Rolling sheet0.5mm(Zhangpu)24000-24100 -100

imported 304sabot18/8 16050-16250 - 50 304No.1 Hot Rolled sheet3mm 21100-21200

domestic 304sabot Ni≈7.6-7.8% 15600-15800 - 50 201No.1 Rolling sheet3mm(Taiwan) 10600-10700

shredded stainless steel Ni≈7.7-7.9% 15350-15550 - 50 430/2B Rolling sheet 0.4mm(Baoxin) 13300-13400

shredded stainless steel Ni≈7.4-7.6% 15150-15350 - 50 430/2B Rolling sheet 0.5mm(Baoxin)12250-12350

remelt stainless steel scrap Ni≈7.0-7.2%13850-14050 202 stainless steel scrap (Ni≈3.5-3.8%)9300-9600 - 50

301scrap (Ni≈5.9-6.1%) 12100-12300 201SS 6400-6600 - 50

430solids 4950-5150 - 50 201SS (old pipe scrap) 5700-5900 - 50

Nanhai Ferrous

Scrap Iron(leftover material) 3150-3200 + 50 HRB335(shaoguan)12mm 4950-5000 + 50

cast iron 2950-3000 + 50 HRB335(shaoguan)18-25mm 4770-4820 + 40

stainless clippings (thickness≥4mm) 3050-3100 + 50 Q235Ф6.5mm 4790-4840 + 50

mix steel scrap 2580-2630 + 50 cold rolled sheet(anshan) 0.7mm 5650-5700

electric motor(Cu≈13%Fe≈78%Al≈5%) 9720-9820 + 30 cold rolled sheet(anshan) 1.0mm 5450-5500

electric motor(Cu≈11%,Fe≈84%) 8040-8140 + 20

South China (Qingyuan)1#bare bright 62200-62400 +200 clean tinned copper wire 60800-61000 +200

tube of copper radiators (no rope) 60500-60700 +200 clean tinned copper net 58700-58900 +200

copper transformer（94-95%） 58100-58300 +200 tinned copper scrap (90-91%) 53700-53900 +200

clean copper nodules (95-96%) 58900-59200 +300 lead-coated copper wire 60200-60400 +200

motor copper(90-91%) 55600-55900 +200 copper clad laminate Cu≈45% 23900-24100 +200

copper brick(93%) 55600-55800 +500 motor iron 2990-3040 + 20

clean industrial castings 13400-13600 aluminum transformer （94-95%） 13300-13450

industrial castings (Fe 6%-8%) 12500-12700 UBC Baled Densified (impurity≤4%) 10750-10850

Plastics

clean black PVC plastic husk(small) 2500-2600 clean white PE foam 6650-6750

clean white PVC plastic husk 4250-4350 high-pressure PE(clean plastic husk) 6350-6450

clean greyish-white PVC plastic husk 4200-4300 high-pressure & high-temperature PE husk(middle)3400-3500

clean PVC plastic husk (pigment) 3500-3600 high-pressure fragmentized PE(humidity:27-30%)2400-2500

clean black PVC plastic husk (large) 4050-4150 submerged materials (clean plastic husk) 2450-2550

flame retarded PVC sheath 2400-2500 flame retardant materials 87000-88000

copper cathode ＊ 71300-71500 +500 low-oxygen copper rod 8mm ＊ 71500-71700 +300

domestic A00 ＊ 16510-16610 + 30 1#bare bright 62100-62300 +200

electrolytical 0#Zn Ingot ＊ 17850-18050 +150 2#copper (94-95%) 59000-59300 +200

1# nickel plates ＊ 192000-193000-1500 American honey (Fe﹤3%) 39000-39200 +100

1# tin ＊ 200000-202000+1000 304/2B Rolling sheet 0.4mm(Baoxin)＊ 27000-27100 -100

1# lead ＊ 17600-17800 +150 304/2B Rolling sheet0.5mm(Baoxin)＊ 26100-26200 -100

oxygen free rod 8mm ＊ 72300-72500 +500 304No.1 Hot Rolled sheet 3mm ＊ 22700-22800

Copy right 2006. All right reserved. No part of this publication may be reproduced or transmitted by any means without written permission of the publisher.

East China (ShangHai)

TaiZhou,YongKang (Zhejiang Province)low-oxygen copper rod 8mm 64000-64200 +300 316 stainless clips（Ni10Mo2） 22900-23100

1#bare bright 61900-62100 +200 imported 304 sabot (Ni≈8.2-8.3%)16250-16450 - 50

candy 61000-61200 +200 domestic 304sabot (Ni≈7.6-7.8%)15700-15900 - 50

tube of copper radiators (clean) 60400-60600 +200 430 solids 4800-5000 - 50

2#copper (94-95%) 58800-59100 +200 202 stainless steel scrap (Ni≈3.5-3.8%)9300-9500 - 50

copper transformer（Cu≈95%) 59200-59400 +200 201SS 6300-6500 - 50

motor copper(92-93%) 57400-57700 +200 201SS (old pipe scrap) 5550-5750 - 50

burnt wire(97-98%) 60200-60500 +200 scrap iron (leftover material) 3160-3210 + 30

American honey (Fe﹤3%) 38800-39000 +100 motor iron 3050-3100 + 30

pure aluminum wire 14550-14750 + 50 mix steel scrap 2740-2790 + 30

clean 6063 extrusion scrap 13500-13700 + 50 Al/Cu radiator (Cu≈48% Al≈50%) 32700-32900 +200

aluminum from radiator(89%) 12200-12400 + 50 irony al/cu radiator (Cu≈48% Al≈44% iron31100-31300 +200

tense (Fe﹤3%) 13400-13600 + 50 electric motor(Cu≈9-10%) 7830-7850 + 20

Al ingot(made by Al radiator) 14550-14650 + 50 lead sheet 14350-14550 + 50

North China (TianJin, BaoDing)low-oxygen copper rod 8mm 64100-64300 +200 2#copper(94-96%) 59200-59500 +200

1#bare bright 62100-62300 +200 motor copper(92-93%) 57700-58000 +200

1#copper 97% 61800-62000 +200 Al/ Cu radiator(Cu≈45% Al≈53%) 31900-32100 +100

burnt wire(95-94%) 59400-59700 +200 tense (Fe﹤3%) 13450-13650

Rare MetalsFe mo60 ＊ 147000-148000 +500 1#chromium ＊ 83500-84500 +500

Jinchuan 1#cobalt ＊ 315000-318000-5000 electrolytic manganese ＊ 19900-20100

CIF China (Exclude customs)

USA 1#Bare bright 8680-8700$/T + 50 USA 6063 Alum Extrusion 2005-2025$/T

USA cliff/birch (94-96%) 8280-8310$/T + 50 USA clean taint 1665-1685$/T

USA honey (Fe﹤3%) 5310-5330$/T + 30 zorba (Al 93-95%) 1815-1835$/T

USA clean ocean 4940-4960$/T + 30 USA ACSR (Al68%) 1655-1675$/T

USA304ss18-8 2130-2150$/T - 10 USA clean Al Radiator 1695-1715$/T

Copy right 2006. All right reserved. No part of this publication may be reproduced or transmitted by any means without written permission of the publisher.

currency rate USD Inverse GBP Inverse EUR Inverse AUD InverseCNY 0.15268 6.5496 0.09353 10.6916 0.10721 9.3279 0.147370 6.78563

Metal scraps performances in Nanhai market in April 6, 2011

Copper:

LME copper rebounded after touching $USD 9,264 on Tuesday (April 5) and climbs above

$USD 9,400 again on Wednesday (April 6), after a much-anticipated rate hike in China failed to

rattle the market. But as the Inflationary pressure is still quite high in China, economists predict that

China will be likely to enter the rate hike cycle in the future. Fearing that the commodity prices will

be suppressed by successive interest rate hike though, they do not expect that happens in near term.

Having been fluctuating around $USD 9,000 to $USD 10,000 since early this year, LME copper

manages to rebound from its lows only with the buying support at the low level.

SHFE copper opens lower but edges up on Wednesday (April 6), which helps to boost the

copper scraps market. From market research, the trading in South China gets more active this

morning as copper scraps buyers are seen raising 200 yuan to make enquiry. And they even tend to

raise their offers following the upward trend of SHFE copper.

Overall, insiders still hold a positive view towards the copper price in April, anticipating a

delayed peak season. But whether this can serve to support the copper price still depends on actual

demand. (Source: Lingtong Metal Information)

Aluminum:

SHFE aluminum jumps slightly on Wednesday (April 6). Spot aluminum price also rises lightly

this morning. Trading in the market gets better. From market research, the demand in South China

still awaits improvement as the inventory continues to increase due to unsatisfactory orders of the

aluminum manufacturers at the moment.

Zinc:

SHFE zinc rises tracking the rebound of the SHFE copper on Wednesday (April 6) after a

continued glide in the previous week. From marketers, spot zinc price also climbs on the day.

However, insiders deem that zinc prices will continue to fluctuate in the short term. And the buyers

still tend to be inactive to make purchases due to the slack demand.

Stainless steel:

LME nickel rebounded after plumbing to its short-term low of $USD 25,050 on Tuesday (April

5), which helps to ease the concern in domestic market of stainless steel scraps. According to market

Chinese Copper Consumers Feel The Heat From High Prices, Tight

Credit -GFMS

China's credit-tightening measures and high market prices for copper are taking a toll on the

country's copper consumers, GFMS senior base metals analyst Nikos Kavalis told Dow Jones

Newswires on the sidelines of the 10th Annual CRU World Copper Conference in Santiago.

China has established itself as the world's top copper consumer over the past decade. The

country's demand for copper, used in electrical wiring and plumbing, has skyrocketed as the world's

second largest economy continues to urbanize and industrialize.

However, China's focus on curbing inflation in the past six months is starting to affect domestic

copper consumers who are battling higher copper prices and tighter credit availability.

"Consumer stockpiles (of copper) in China have collapsed because of the very high prices

combined with increased difficulty in finding access to financing," said Kavalis, who heads copper

research at the metals consultancy.

"It's not impossible to do business but life is more difficult than it was before," he said.

Copper consumers like metal fabricators use raw copper to produce finished goods like door

handles and metal wares, as well as semi-finished products like copper wiring and pipe that is used

by manufacturers in items like iPods, air conditioners and cars.

Chinese authorities have raised interest rates and bank reserve requirements several times over

the past six months to dampen economic growth and rein in inflation rates. Several of these

research, as the stainless steel scraps traders in South China still take a dim view of the prospect of

the stainless steel scraps at the point, they remain cautious to make purchases. Most of them will

pay attention to the new orders from the steel plants in near term.

the past six months to dampen economic growth and rein in inflation rates. Several of these

increases came ahead of Chinese New Year celebrations which fell in early February.

The tightening measures coincided with record-high copper prices.

Copper futures set a record highs in early February, ahead of the Chinese New Year

celebrations, adding pressure on budget-wary consumers in China.

As copper prices rise, consumers need more money or credit to buy the same volume of metal.

However, with credit lines tough to find consumers were forced to keep inventories low and work

down existing stocks.

"Typically, Chinese fabricators would add to stockpiles ahead of the Chinese New Year, but

this year they didn't do this to the same extent because credit was too tight and prices were very

high," Kavalis said.

China's Chinalco sees strong copper, aluminum in 2011

Growing global copper consumption and strong fundamentals are expected to support prices in

2011, an executive at China's state-owned aluminum giant said on Tuesday.

Aluminum prices would rise on the turmoil in the Middle East, which has helped push oil

prices to their highest in 2-1/2 years, and on strong demand, Liu Xiangming, vice president and

executive director of Aluminum Corporation of China (Chinalco), said at the Asia Mining

Conference in Singapore.

Growth may support prices of commodities

China's economy will maintain "stable" growth of 7 to 8 percent a year, supporting demand for

commodities including aluminum and copper, said a senior official at Aluminum Corporation of

China.

Demand for aluminum in the construction sector accounted for more than 35 percent of total

consumption last year and is likely to maintain a similar level this year, Liu Xiangmin,

vice-president of Aluminum Corporation of China, said at a conference in Singapore on Monday.

"There are many large construction projects on the national and town level in the 12th

Five-Year Plan (2011-2015)," he said. "Demand will continue to grow."

China's manufacturing expanded for the first time in four months in March from February, a

report showed last week, indicating that Premier Wen Jiabao is succeeding in sustaining growth

while cracking down on inflation.

China's central bank will boost interest rates again this quarter, according to all 20 economists

in a Bloomberg survey on March 22.

Aluminum prices will increase as the price of oil stays high, driving up energy costs, which

account for more than 40 percent of the cost of making the metal, Liu said. "It's a classic case of

prices being pushed up by cost pressures. Substitution away from copper and steel in the

transportation sector will also support prices."

Still, price gains will be limited by monetary tightening efforts taken by the Chinese

government to tackle inflation, Liu said. Copper price increases will also be constrained by China's

cooling measures, he said. Copper, at around $10,000 a ton, is trading "far above cost, and we

believe prices will correct this year", Liu said.

China imported iron ore stocks rise 0.8 pct this wk

Stockpiles of imported iron ore at major Chinese ports rose 0.8 percent this week to end at

79.85 million tonnes, up for the first time in a month, according to data from industry consultancy

Mysteel.

China's port iron ore stocks have stood at more than 60 million tonnes since 2008, and surged

past the 80 million tonne mark in February following a spree of orders by local mills and traders

banking on strong steel demand.

Despite the drop in orders since mid-February, port stocks have fallen by just a fraction,

indicating that steel mill inventories have not yet reached a critical level.

Prices of the key steelmaking raw material inched up over the week as end users returned to

the market to replenish stocks that had been dwindling since mid-February.

But analysts were pessimistic about long-term demand, and said orders could slow in April as

steel mills start to digest the costly port inventories.

Portugal yields at new high; metals down on China

Portugal's key bond yield rose to a euro lifetime high as the country moved closer to a possible

debt bailout, hitting the euro, which fell further from a five-month high against the dollar after

China raised interest rates.

Metal prices and the Australian dollar, seen as a proxy for Chinese growth because of its

exports of raw materials to the world's second largest economy, also fell after Beijing hiked rates for

the second time this year to cool stubbornly high inflation.

China's tightening also dented Brent crude prices, which pulled back further from 32-month

highs but stayed just above $120 a barrel as markets focused on fears that unrest in producer states

in Africa and the Middle East could disrupt supply.

Global stocks snapped a five-day winning streak.

Moody's said it believed Portugal's incoming government would need to seek financial aid

from the European Union as a matter of urgency.

"Even though Moody's still rates the sovereign two notches higher than Standard & Poor's, the

downgrade is another blow to sentiment," said Gavan Nolan, an analyst at data monitor Markit.

There were also reports that Portuguese banks may be threatening to stop buying government

bonds to pressure Lisbon into seeking a bailout, following the same path as Greece and Ireland.

Yields on Portugal's 10-year government bonds rose to 9.033 percent, while Portuguese stocks

fell 0.8 percent, underperforming the broader FTSEurofirst 300 index, which was down 0.1 percent.

Credit default swaps implied a 41 percent probability of a Portugal default within five years,

compared with 33 percent at the end of February, data provider CMA said.

The euro was down 0.4 percent at $1.4162, off a five-month high of $1.4268 hit on Monday,

while the Australian dollar fell 0.7 percent to $1.0295 and the greenback was up 0.2 percent against

a basket of major currencies.

Investors' assessment whether the single currency can make fresh gains given that players have

already positioned themselves for interest rate rises in the euro zone during 2011 also put pressure

on the euro, which has risen 5.9 percent against the dollar and 10 percent versus the yen this year.

"There is a lot of good news priced into the euro already and (ECB President Jean-Claude)

Trichet will have to support the rate view to keep the positive momentum," said Niels Christensen,

currency strategist at Nordea in Copenhagen.

The European Central Bank is widely expected on Thursday to raise rates by 25 basis points

from a record low of 1 percent to tame inflationary pressures.

from a record low of 1 percent to tame inflationary pressures.

OIL IMPACT

Federal Reserve Chairman Ben Bernanke said late on Monday that the recent spike in

U.S. inflation was unlikely to persist.

But a sustained higher oil price could pose a serious threat to the global economic

recovery and dampen risk appetite, and commodity price pressures saw silver rise to a

31-year high.

"It's interesting that the recent rally in oil has had virtually no impact on equities. It was

just over a month ago where equities markets were nervous about the impact of oil prices on

the economy," Deutsche Bank strategist Jim Reid said in a note.

"The difference this time is that the rise has likely been due to decent growth rather than

immediate geopolitical concerns. Nevertheless one would expect the creeping price of oil to

start to get more attention given the recent rally."

World stocks measured by MSCI All-Country World Index fell 0.3 percent after hitting

six-week highs in the previous session, while emerging market shares was flat.

In Asia, Japan's Nikkei average lost 1.1 percent with investors still wary about the

long-term impact of last month's massive earthquake and tsunami and a resulting nuclear

accident that workers are still struggling to contain.

Brent crude eased after hitting a 32-month high of $121.29 on Monday as Nigerian

election delays and a short-lived strike in Gabon added to supply jitters for a market already

on edge over fighting in Libya and unrest in Yemen, which borders top producer Saudi

Arabia.

Silver dipped 0.1 percent after touching $38.77 an ounce, its highest since early 1980,

before the Chinese rate rise, while gold fell 0.3 percent and copper lost 0.3 percent, down for

the third day in a row.

Argentina's Aluar plans Brazil investment

Argentina's biggest aluminum producer, Aluar (ALU.BA), is planning to invest soon in Brazil

and expects output to reach 475,000 tons this year, the company's chief executive said on Monday.

Aluar will not meet its goal to increase output to 515,000 tons a year in 2011 as it shifts to

focus on margins, Chief Executive Javier Madanes told the Reuters Latin America Investment

Summit in Buenos Aires.

"We've prioritized the investment to add value to products...it delays the expansion plan to

boost output, but production will still rise this year" from 425,000 tons last year, Madanes said.

He sees restrictions in Brazil's aluminum market as an opportunity to invest in the regional

powerhouse.

"Brazil has restrictions that are blocking supply while demand is rising. We're looking into

investing there," Madanes said. Asked when the investment could take place, he said: "very soon."

The company's third-quarter earnings "will be in line" with the $40 million net profit in the

second quarter, Madanes said.

The global price for aluminum, trading at around $2,630 on Monday, should average around

$2,750 per ton this year, Madanes said.

"If the world economy doesn't see any turns, if the world economy grows at 3 or 4 percent this

year, we see a positive outlook for aluminum, perhaps with a slight hike in prices," Madanes said.

But he predicted it would take years before commodities demand and prices return to 2008

peak levels when aluminum prices reached $3,300 per ton.

Madanes said in recent years China had made an enormous strides to become a major supplier

in the global aluminum market.

"China currently supplies 22 to 24 percent of the world's aluminum...it went from having a

large demand for the product to become a supplier," Madanes said.

Aluar regularly receives acquisition offers from companies at home and abroad, but is not

currently considering any of them, he said.

The company, which exports about 75 percent of its total output, recently hired 300 employees

to increase its workforce to just under 4,000. Most work at Aluar's primary aluminum production

plant in the southern city of Puerto Madryn.

Aluar, which is 77 percent controlled by the Madanes family, is one of several firms in which

the state pension administrator, Anses, has a stake after the government took over the private

pension system in 2008.

The government holds a 10 percent stake in the company.

Minmetals Resources seeks copper, lead, zinc assets as top priority

Minmetals Resources has put copper, lead and zinc assets on top of its priority list, followed by

nickel and aluminium bauxite, as the company seeks to diversify its assets, said a senior company

official on Tuesday.

The company also hopes to add assets from Central Africa's copper belt and the Andean region

of South America to its portfolio in the next five years, Michael Nossal, executive general manager

of business development, told reporters on the sidelines of a conference.

China ups rates 4th time since October

China's central bank increased interest rates on Tuesday for the fourth time since October,

raising suspicions that data next week may show inflation rose more than expected in March.

China's rate rise adds to six official increases in bank reserves since October and underlines

Beijing's determination to clamp down on inflation, which leaders have declared as their most

important task this year to keep the world's fastest growing major economy on track.

The increase comes before the European Central Bank is expected to raise its rates on Thursday

for the first time since the global financial crisis, showing how inflation is rising to the top of the

global policy agenda.

"The March inflation figures must be very high," said Xu Biao, economist with China

Merchants Bank in Shenzhen.

"It is an aggressive move, and the central bank is acting more aggressively than the market had

expected. The latest interest rate rise, although at only one quarter point, may hurt investor

confidence and the real economy quite significantly. More importantly, it is not the end of China's

monetary policy tightening."

Benchmark one-year deposit and lending rates were lifted by 25 basis points to 3.25 percent

and 6.31 percent respectively, the People's Bank of China said in a statement on its website.

The rises take effect from April 6, when financial markets in China reopen following public

holidays on Monday and Tuesday.

China is due to report the March consumer price index on April 15. Economists expect the data

to show that consumer inflation rose to 5.1 percent in March, matching a 28-month high seen in

November.

Inflation was 4.9 percent in February, unchanged from January. Beijing is aiming for inflation

to average 4 percent this year.

Metals and crude prices eased after the news of China's rate rise on fears tighter policy will

restrict the country's demand for commodities. The Australian dollar, a proxy currency for

commodities, also fell.

"We did expect a rate hike in April so it's not a complete surprise," said Allan von Mehren,

chief analyst at Danske Bank in Copenhagen.

"They are raising rates to stem the inflationary pressures in the economy. We expect another

two hikes of 25 basis points each this year. We are already seeing a slowdown in the Chinese

economy but they need to raise rates a couple more times.

"They will still use reserve requirement increases but they also need to raise rates. I think they

will use different tools (to tackle inflation)."

INFLATION PRESSURES

INFLATION PRESSURES

Food prices have been the main driver of China's inflation. Although monetary policy has little

affect on food prices, since people have to eat, the tightening reflects concerns that price pressures

will spread to other parts of the economy and so raise inflation expectations.

Underscoring those worries, consumer goods giants Procter & Gamble and Unilever had both

planned to raise prices for detergent and soap by 15 percent this month, local media reported on

March 28.

Unilever agreed to comply with a request from authorities to postpone its price rises, the

Financial Times reported on Saturday.

Sharply rising commodities prices, including international crude prices that are hovering

around their highest levels in more than two years, are another inflation threat.

The economy, which grew more than 10 percent in 2010, is vacuuming up commodities

globally to satisfy the drive for growth. Analysts have said they expect inflation in China to peak

around the middle of the year.

"This rate hike suggests that the March CPI that is to be released early next week may have

surprised to the upside. Our current CPI forecast is 5.2 percent y/y for March," said Qing Wang, an

economist with Morgan Stanley in Hong Kong, in a note to clients.

"It also suggests that Chinese authorities are confident in the sustainability of underlying

growth momentum."

There are some signs that the raft of monetary tightening, which has been accompanied with

prices controls, is starting to take effect.

Indeed, the central bank drained 300 billion yuan ($46 billion) in cash from money markets in

March through open market operations after injecting cash in January and February, to add to the

tightening.

A central bank survey released in March showed more households were satisfied with current

price levels and saw less chance of rising inflation.

Purchasing managers' surveys last week also showed price pressures were easing.

GLOBAL CONCERN

Most central banks in emerging markets in Asia and Latin America have raised interest rates as

the regions emerged strongly from the global financial crisis.

But major central banks in the developed world are now showing signs of starting to catch up.

The European Central Bank is expected to raise interest rates on Thursday by 25 basis points to

1.25 percent after inflation rose above its target.

Comments from some Federal Reserve policymakers have raised market expectations that the

U.S. central bank is moving toward a tighter policy.

So far, complaints among Chinese about rising prices have amounted to little more than

grumbles, but serious inflation has sparked social unrest in China in the past.

"This is ultimately good news because it reduces the risk of policy error in China that markets

were getting nervous about,Benoit Anne, head of emerging markets strategy at Societe General, said

of the rate rise.

"It reduces the danger of Chinese policymakers being too dovish and shows them addressing

the mounting inflation risk which is a massive tail risk for emerging markets. We will see a few

more hikes as China needs more monetary tightening."

The central bank boosted bank reserves, or the amount of cash that banks have to put aside, by

50 basis points to 20 percent on March 18.

The move locks up cash that banks could otherwise lend out and potentially fuel inflation.

Excess cash stemming from China's vast trade surplus has been a root cause of the country's

inflation.

US STOCKS-Wall St set to rise at open, faces resistance General Dynamics off after jet crashes in test flight Southwest Airlines shares fall after plane groundings Pfizer to sell unit to KKR for about $2.4 billion Futures up: Dow 20 pts, S&P 3 pts, Nasdaq 9.5 pts

U.S. stocks were set to open slightly higher on Monday, with the S&P 500 facing a level where

selling has clustered in recent sessions.

S&P 500 futures traded in a tight range below 1,333. The benchmark has been unable to close

above that level since mid-February, although the index briefly pierced it on Friday.

That level is double the 12-year low hit in March 2009 and is not far from 1,344, the S&P's

2011 high and its highest since June 2008.

On Friday, the S&P closed its best two-week period since December and the Dow

industrials .DJI hit its highest intraday level since June 2008.

"The speed with which we moved up is putting a bit of a curb on a further rally," said Rick

Meckler, president of investment firm Liberty View Capital Management in New York.

"Certainly there are plenty of traders who will be using this run-up to try and take profits and

get back at a better point. It's hard to maintain the speed of this advance," he said.

The lack of significant economic data on Monday, nuclear and other quake-related problems in

Japan and unrest in Libya, Syria and other states in the oil-rich region could translate into low

volumes in Wall Street. Last week was the lowest in volume so far in 2011.

S&P 500 futures SPc1 rose 3 points and were above fair value, a formula that evaluates pricing

by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones

industrial average futures DJc1 gained 20 points and Nasdaq 100 futures NDc1 added 9.5 points.

Shares of defense contractor General Dynamics dropped 3.7 percent to $74.55 premarket after

its business-jet unit Gulfstream Aerospace said a jet crashed during a test flight on Saturday, killing

two pilots and two flight-test engineers.

Southwest Airlines Co shares dropped 2.8 percent to $12.31 in premarket trading after planes

were grounded for inspection. A U.S. safety investigator said on Sunday evidence of widespread

fuselage cracks was found on a jet that made an emergency landing with a hole in the cabin.

In the latest acquisition news, Pfizer Inc rose 0.7 percent to $20.53 after the drugmaker agreed

to sell its Capsugel unit, the world's largest maker of hard capsules, to private equity firm KKR &

Co for nearly $2.4 billion.

"Today will be influenced a little by takeovers in the marketplace and further gains in

commodities," LibertyView's Meckler said.

Nasdaq OMX Group Inc and InterContinental Exchange Inc face serious hurdles to their

unsolicited bid for NYSE Euronext, that could prevent their offer from being accepted.

unsolicited bid for NYSE Euronext, that could prevent their offer from being accepted.

Deutsche Boerse is holding off on making any decision as to whether to raise its rival offer for

NYSE Euronext, two sources familiar with Deutsche Boerse's thinking said on Monday.

Shares of NYSE Euronext dipped 0.9 percent to $39.25 premarket. Nervousness over the

political unrest in the Middle East and North Africa helped lift oil prices, with Brent crude LCOc1

rising to near $120 a barrel and U.S. crude hitting a 2-1/2-year high above $108.

Copper ends up; market digests China rate hike Copper market brushes off China 25 bps rate hike Sentiment buoyed by upbeat tone from CRU mining conference LME copper stocks stand at highest since July Coming up: U.S. weekly jobless claims Thursday

Copper ended higher on Tuesday, after a much-anticipated rate hike in China failed to rattle the

market, even as the metal-consuming giant's appetite for the metal has softened at the start of the

year. China's central bank raised interest rates for the fourth time since October in a bid to cool

stubborn price pressures.

After initial knee-jerk losses, copper prices recovered and moved higher as the session wore on,

underscoring the metal's resilience and supportive fundamental backdrop, analysts said.

"It shows just how fundamentally tight the copper market is even in a tightening environment

in China and other emerging markets, you're not seeing a breakdown in the metal," said Evan Smith,

co-manager of the U.S.

Global Investors Global Resources Fund, a natural resources fund more than $1 billion in

assets under management. London Metal Exchange copper for three-months delivery CMCU3

closed up $60 at $9,390 a tonne.

COMEX May copper HGK1 rose 0.95 cent to settle at $4.2645 per lb.

China's rate hike adds to six official increases in bank reserves since October, underlining

Beijing's determination to clamp down on potential asset bubbles, analysts said.

"My take is that China does tighten a bit more, but they're not going to slow things up too

much maybe just control some of the hot money," said Bart Melek, Vice President and Director of

Commodities, Rates Research & Strategy with TD Bank Financial Group.

"I think they did it more for the bubble-esque asset market than they did for the real economy."

Indeed, a government researcher said in remarks published on Friday that China's central bank

might have to raise interest rates and reserve requirements in April.

"You're hoping for a soft-landing scenario, where they tighten just enough to keep speculation

under control while not materially slowing their economy. It's kind of a balancing act that looks to

be working right now," Global Investors' Smith said.

Copper prices received additional support from comments made by China's state-owned

Chinalco, saying growing global copper consumption and strong fundamentals were expected to

support the price this year, although the market would be volatile.

A generally upbeat tone from the CRU conference in Chile, the world's biggest copper industry

gathering, also improved the mood. The head of Anglo American's (AAL.L) copper business, John

MacKenzie, said copper stocks held by Chinese investors were unlikely to flood the market any

time soon.

RISING STOCKS

There are concerns that rising stocks held by investors as collateral in China, not immediately

visible to the market, could significantly reduce an expected copper deficit that has catapulted prices

to record highs this year.

Latest data showed stocks of copper in LME warehouses rose 4,425 tonnes to 442,325 tonnes,

their highest since early July 2010. On Monday 6,000 tonnes of stock entered into South Korea,

extending a recent rise in LME copper stocks in Asia.

"Copper's on the weak side, not helped by that increase in stocks in Korea overnight," said

Stephen Briggs, an analyst at BNP Paribas. "It's likely to be Chinese material, and that's a pattern

that we've seen this year."

Copper prices have shed about 8 percent since hitting record highs of $10,190 a tonne in

London and $4.6575 per lb in New York on Feb. 15, as the price strength has deterred Chinese

purchases.

"We remain cautious about the short-term outlook," MF Global said in a note about base metals.

"In particular, the spectre of rising interest rates practically the world over, has us the most

concerned, as it will most likely dent growth prospects going into the second half of the year."