[Al] CBI Morning Review - 2009/6/4 Aluminum Market

SHANGHAI, June 4 (CBI China) -- The U.S. Department of Commerce announced on Wednesday that the US factory orders in April increased by 0.7%, while the market players predicted it would be up 0.9%; the durable goods orders in April were revised from up 1.9% to up 1.7%. The Institute of Supply Management (ISM) announced on Wednesday that the non-manufacturing index in May was 44.0, with the estimated level of 45.0. The US economic data were worse than expected, indicating the economic situation is not optimistic, and generating the doubt of investors over the prospects for economic recovery. The demand for risk avoidance and the positive remarks of the U.S. Federal Reserve Chairman pushed up US dollar.

    LME base metal prices fell, since the worse-than-expected economic data triggered the profit-taking of investors. LME aluminum fell slightly by USD 5/mt. The inventories declined slightly by 1,125mt, bringing total inventories to 4,241,350mt. Yesterday, the strong domestic aluminum price was due mainly to the stimulus of tightness of spot supply in Shanghai market. However, the entire weak market fundamentals will hamper the upward trend of aluminum price. 

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