[Al] CBI Morning Review - 2009/4/16 Aluminum Market

SHANGHAI, Apr. 16 (CBI China) -- The U.S. Department of Labor announced on Wednesday that the U.S. consumer price index (CPI) declined by 0.1% during March compared to February, down 0.4% YoY, an indication of thin possibility of deflation, as the price declines focused on the energy and energy related products. The U.S. Federal Reserve Board (Fed) announced on Wednesday that the U.S. industrial output during March declined by 1.5% compared to February, much lower than expected, as the market predicted it will decline by 1.0%, with annual rate down 12.8%. The manufacturing index during April in New York state improve to -14.7 from March level of -38.2, much better than -35 as the economists predicted. The economic data shows the U.S. is still in recession, but at a slower pace.

    Overnight LME base metals price inched up generally driven by strong LME copper price. LME aluminum rose slightly to USD 1,520/mt, up USD 10/mt, due to growing inventory. The inventories increased by 15,600mt to 3,666,8758mt. The supply improved in domestic spot market, and the continuous declines during recent two days in spot price dampened SHFE aluminum price, so aluminum price is expected to fluctuate with a sign of weakening in the short term depressed by the weak aluminum market fundamentals. 

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