http://www.*****.com/reports/*****NewsMarketNuggets20110912.htmlD...

http://www.kitco.com/reports/KitcoNewsMarketNuggets20110912.html

Deutsche Bank looks for aluminum to outperform other base metals that are likely to face ongoing headwinds for a while. For now, heightened levels of equity-market volatility are likely to weigh on base metals, the bank says. ?While we expect the peak in Chinese inflation is behind us, we expect the decline will not be sufficient to trigger an immediate easing in monetary policy,? the bank adds. Still, aluminum may fare best. ?The combination of declining SHFE (Shanghai Futures Exchange) inventories, a rising physical premium and the SHFE forward curve moving into backwardation are indicative of Chinese aluminum physical market fundamentals tightening. Furthermore, we believe interest rates are likely to stay low for longer, which suggests that excess aluminum is likely to remain tied up in financing deals. Another risk is the possible re-emergence of power shortages affecting industrial production.? The bank looks for aluminum to average $2,800 a metric ton in the fourth quarter, $2,900 in the first quarter of 2012 and $2,938 for full-year 2012