[Al] CBI Morning Review - 2008/12/23 Aluminum Market

SHANGHAI, Dec. 23 (CBI China) -- The United States Government concerning about auto giant improved market confidence, basic metals prices increased further following the trend yesterday, overnight three-month LME aluminum closed at USD 1,560/mt, up USD 45/mt, the spot premium was USD 36.5/mt, the inventories increased by 39,350 mt to 2.1979 million mt. China Central Bank yesterday lowered the benchmark of interest rate by 0.27%, at the same time lowered the deposit reserve by 0.5%, as the previous data published by China were poor, the market had much expectations on the interest cuts and the decline in the interest cut was small, as a result, CBI believes that the market reaction was moderate. SHFE aluminum dominant contract received greater pressure above RMB 11,000/mt, and is expected to fluctuate around RMB 11,000/mt today.

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