MARKET TALK: China Aluminum Futures Sink, May Stay Weak

Aluminum futures on Shanghai Futures Exchange sharply lower tracking LME 3-month aluminum's 3% fall Friday; "we may see more losses this week (on SHFE) as cash prices are likely to be pressured by rising import arrivals," says Shanghai trader. Favorable SHFE, LME price ratio at year-end prompted more imports. Says overall bearish sentiment for metals after steep losses last week likely to weigh on aluminum further this week, though aluminum's generally price-supportive supply/demand fundamentals little changed. Benchmark March 2007 contract at CNY19,360/ton, down CNY510 or 2.6%.