[Al] CBI Morning Review - 2009/4/21 Aluminum Market

SHANGHAI, Apr. 21 (CBI China) -- The United States Conference Board announced on Monday that leading indicators fell by 0.3% during March, no rise for 9 consecutive months, and worse than the prediction of economists. Bank of America announced its profit in 1Q was USD 4.2 billion, better than the forecast of analysts, however, the company prepared up to USD 13.4 billion as reserves for loan losses, indicating the deteriorating credit quality at the same time. The market concerns on the prospects of financial industry hammered the U.S. stock, while the U.S. dollar and other hedge assets flowed into the market again, pushing up the U.S. dollar.

    Negatively affected by the strong U.S. dollar and weak U.S. stock, overnight LME base metals declined. LME aluminum closed at USD 1,438/mt, down USD 42/mt, the inventories declined by 6,100mt to 3,660,025mt. SHFE aluminum dominant contract tested the previous support level of RMB 12,500/mt, and will keep moving the short term due to fierce competition between long and short investors.

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