The supercycle continues… for now! • The spot market has seen only a muted response from Chinese buyersfollowing end of lunar year holidays. • Chinese interest is defined at $415/t CIF but merchant expectations arehigher, bridging this gap should, given rising LME prices, be achievable. • Additional tender announcements are already emerging as suppliersincrease tonnages sold at spot levels, and consumers continue to hold offlocking into multi-year contracts. Market commentary Muted response followingend of lunar year holidays The much-anticipated boost to the spot marketfollowing the return of Chinese buyers, after theclose of the lunar year holidays, has so far beenslow in emerging. Whilst there is no shortage ofbusiness to report, actualdealsbetweenproducers/trade and smelters are limited in number. Market conditions are light, and in fact consumers are still holding back from purchases in search of direction. An industry gathering in Miami may have also had a part to play; face-to-face meetings between participants will hopefully go some way to bridge the gap between expectations and reality. Nonetheless, the spot market guided by the factthat LME prices continue to strengthen and basedon the assumption that the appetite of Chinesesmelters remains unfettered by recent changes totax regulations, has firmed given latest tender awards.