[Al] CBI Morning Review - 2009/5/27 Aluminum Market

SHANGHAI, May 27 (CBI China) -- The Conference Board announced that the US consumer confidence index during May rose to 54.9, a new high over eight months, while the consumer confidence index was revised to 40.8 from 39.2 during April. Previously, the analyst interviewed by Reuters predicted the consumer confidence index during May would be 42.0. The US consumer confidence index during May were better than expected, offsetting the investor concerns over the rumor that the State Reserve Bureau will sell 50kt of copper, and the US stock markets became strong after fell for 4 straight days.

    LME base metal prices rebounded due to strong US stock markets and the better consumer confidence. LME aluminum price closed at USD 1,455/mt, up USD 5/mt, and the LME aluminum inventories have exceeded 4.2 million mt last night. The tightness of supply in domestic market before the holiday will remain unchanged, but the weak market fundamentals will dampen any upward room for the price. SHFE aluminum price is expected to fluctuate. Special attentions should be paid to the arrivals of goods in all regions during the holiday. Aluminum price will face marked changes if the spot supply increases in the market.

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