[Al] CBI Morning Review - 2009/5/13 Aluminum Market

SHANGHAI, May 13 (CBI China) -- As all the countries continued to launch the economic stimulus plans, and the quantitative easing monetary policy has been recognized by more and more countries. However, the global inflation began exerting great pressure on commodity markets when various economic data showed a recovery trend. The previous increases in crude oil price and LME base metal prices benefited from this. While the constant declines in US dollar index failed to support base metal prices to rise further, an indication of no improvements in aluminum market fundamentals.

    Overnight LME three-month contract aluminum price continued to fluctuate slightly, and closed at USD 1,545.5/mt, up USD 0.5/mt. The spot discount rose to USD 40/mt, and the inventories continued to increased to over 3.87 million mt. Oversupply appeared in domestic market, and the imports of refined aluminum in April were out of market expectations. Monthly imports of primary aluminum are expected to exceed 300kt, accounting for 1/3 of total monthly domestic output. In this context, the market players will reconsider Chinese actual demand since the domestic market has consumed so much supply. Aluminum price will fluctuate narrowly in the short term.

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