[Al] CBI Morning Review - 2009/4/2 Aluminum Market

SHANGHAI, Apr. 2 (CBI China) -- The U.S. Institute for Supply Management (ISM) announced on Wednesday that the manufacturing index was 36.3 during March, with 36.0 of market expectation. The National Association of Realtors (NAR) announced that the pending homes sales index during February increased by 2.1% to 82.1, with the prediction of up 1.0%. The U.S. Department of Commerce announced on Wednesday that the construction outlays declined by 0.9% to USD 968 billion during February, with the prediction of down 1.8%. The economic data were better than expected, which stimulated the market sentiment, and the U.S. stock market climbed up.

    Overnight LME base metals prices were mixed, LME aluminum closed at USD 1,390/mt, down USD 5/mt. The inventory increased by 8,325mt to 3,477,300mt. Yesterday, Aluminum Corporation of China (Chalco) lifted the alumina price to RMB 2,300/mt, leading to the increases in the cost of aluminum smelting and leaving support to aluminum price. In the mean time, the tight domestic supply will be eased until mid-April, so it is unlikely for aluminum price to fall sharply in the short term. However, more and more large-size aluminum producers restart the idled capacities, so aluminum price will meet more downward pressure in the long run.

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