[Al] CBI Morning Review - 2009/6/5 Aluminum Market

SHANGHAI, June 5 (CBI China) -- The U.S. Department of Labor announced on Thursday that the initial claims for unemployment benefits decreased by 4,000 to 621,000 on May 30th, which is the first time for the weekly continuing claims for unemployment benefits to decline since January 3rd, indicating the positive US job market and boosting the market confidence again. The European Central Bank announced on Thursday that it will keep interest rates of 0.5% unchanged, and did not make adjustments for quantitative easing measures. Base metal prices moved upward strongly. As to energy, Goldman Sachs reported that crude oil price will rise to USD 85/barrel, while yesterday crude oil price soared to USD 70/barrel, up 4%.

    The speculations on the value of aluminum energy reappeared in the market, and LME aluminum closed at USD 1,582/mt, up 6%, and the inventories declined by 6,900mt to 4,234,450mt. The substantial increases in LME aluminum inventories indicate the admission of fund. SHFE three-month contract aluminum price will likely soar to the previous high level of RMB 13,500/mt today propelled by strong LME aluminum market. 

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