Shanghai base metals extended the upward trend on Thursday morning. Meanwhile, their counterparts on LME trended mixed. LME metals all closed higher in the trading on Wednesday. Copper rose 1.19%, aluminium increased 1.14%, lead went up 0.89%, and zinc rose 0.44%. SHFE metals performed similarly in the overnight trading. Copper gained 0.84%, aluminium rose 0.83%, lead inched up 0.03%, zinc won 0.21%, and nickel increased 1.75%. The US October PCE price index announced on Wednesday soared to a 31-year high, and last week’s initial jobless claims reached its lowest level since 1969. As a result, the market had stronger expectations for the Fed to accelerate taper and advance interest rate hike, and the US dollar hit a new high at 96.95 since July 8 2020. There are only two days left for the long-term order delivery this month. The spot premiums fell sharply yesterday as some holders lowered the prices significantly for further restocking. The arrivals of imported goods increased the the port inventory, which also weighed on the prices. After the copper prices surged, the downstream users refuse to accept the high prices and premiums, and they were waiting for the overall prices decline. The spot premiums may shrink further after the deliveries for long-term orders end, but the shrinking room is limited as the market has turned rational. Indonesia announced yesterday that it would cancel the export of bauxite, which triggered bullish sentiment in the market and attracted bulls to enter the market.