[Al] CBI Morning Review - 2009/4/28 Aluminum Market

SHANGHAI, Apr. 28 (CBI China) -- Currently, the outbreak of swine flu in Mexico has resulted in more than 100 people dead and has spread to the U.S., Spain and Canada. On Monday, the U.S. stock negatively affected by swine flu and the investors` concerns over upcoming quarterly report of the enterprises depressed the base metal prices, and the higher hedge sentiment caused the U.S. dollar to become strong as well. As the market players were afraid that the swine flu outbreak could become a global epidemic, and China Nonferrous Metals Industry Association called for the stoppage of the non-ferrous metal reserve programs, dampening the LME base metal prices.

    LME aluminum price has fallen to USD 1,440/mt, down USD 20/mt, and the inventories increased by 9,625mt to 3,701,325mt. The negative impact from restarted capacity can hardly reflect in the market in the short run, but the continuous arrivals of domestic aluminum began delivering downward pressure on the aluminum price. Whether SHFE three-month contract aluminum price can be around RMB 12,500/mt will depend on the surrounding metal prices and market sentiments.

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