[Al] CBI Morning Review - 2009/4/17 Aluminum Market

SHANGHAI, Apr. 17 (CBI China) -- The U.S. Department of Commerce released on Thursday that the housing starts annual rate declined by 10.8% to 510,000 during March, the second record low, with 540,000 as the market prediction; the U.S. building permits fell by 9% to 513,000 in March, a record low. The data shows the U.S. housing market has not hit the bottom yet. The U.S. Department of Labor announced on Thursday that although the number of continuing claims for unemployment benefits is still at record high, the number of initial applications for unemployment benefits has dropped to the lowest level since the end of January, down 53,000 to 610,000.

    The U.S. housing starts fell and the growth rate of Chinese GDP in 1Q slowed down, meanwhile, a portion of investors closed position after profit taking, depressed the overnight LME base metals prices. LME aluminum closed at USD 1,483/mt, down USD 37/mt. The inventories declined by 8,525mt to 3,658,350mt. SHFE aluminum price remained weak when the copper and zinc price continued to be strong. The negative impact of imported aluminum ingots and the expectation of capacity surplus remain the main factors to dampen the aluminum price. Hence, SHFE aluminum price will remain weak in the short term. 

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