[Al] CBI Morning Review - 2009/4/9 Aluminum Market

SHANGHAI, Apr. 9 (CBI China) -- The U.S. fourth-largest housing builder Pulte Homes <PHM.N> said on Wednesday that it would merge the third-largest housing builder Centex Corp <CTX.N> through share exchanges, with the deal value of USD 1.3 billion. Based on the current price, the market value of the merged company will be USD 4.1 billion, creating the largest U.S. housing construction enterprise. This news provided some comfort to Wall Street investors. The U.S. Securities and Exchange Commission (SEC) adopted without objection five kinds of restrictions on short proposal, including the restrictions on short the particular stock with excessive declines, etc. The merger news in residential construction industry and the resolution of SEC to restrict the short stock pushed up the U.S. stock.

    Overnight LME base metals rose following the U.S. stock trend, and LME aluminum closed at USD 1,485/mt, up USD 17.5/mt. The inventories increased by 35,150mt to 3,546,375mt, hitting a record high, creating more concerns to the market outlook. Domestic aluminum price is expected to move around RMB 13,000/mt in the short term.

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