[Al] CBI Morning Review - 2009/5/22 Aluminum Market

SHANGHAI, May 22 (CBI China) -- The U.S. Department of Labor announced on May 16th that the number of initial applications for unemployment benefits declined by 12,000 to 631,000, still slightly higher than market expected. However, the total number of continuing claims for unemployment benefits rose to 6.6 million, hitting a record high once again, indicating the weak job market. On Thursday, the rating agency Standard & Poor's (S & P) changed the Britain's outlook from "stable" to "negative", and the U.S. Federal Reserve (Fed) announced to lower the economic prospects and predicted the economic recovery will very slow, dampening the optimism of investors.

    Bleak prospects for the global economy weighed on the market sentiment, the overnight LME base metal prices fell generally. LME aluminum price closed at USD 1,445/mt, down USD 50/mt. The inventories increased by 34,950mt to 4,176,625mt. The sluggish surrounding markets depressed domestic aluminum price today, and SHFE aluminum dominant contract is expected to test the previous bottom line.

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