[Al] CBI Morning Review - 2009/6/29 Aluminum Market

SHANGHAI, June 29 (CBI China) -- The U.S. Department of Commerce announced last Friday that the personal income in May grew by 1.4%, and the personal spending grew by 0.3%. The US consumer spending and income recorded increases in May, due to the spread effect of government incentives, but most funds have been saving up, and the amount of saving has jumped to a record annual rate of USD 768.8 billion, the highest level since 1959. The rising saving rate triggered the market concerns that if the consumers increase savings rather than consumption, which will have a negative impact on the process of economic recovery.

    Due to the profit-takings after the position adjustments at the end of 2Q, last Friday LME aluminum price closed at USD 1,645/mt, down USD 35/mt, and the inventories increased by 20,500mt to 4,365,925mt. SHFE three-month contract aluminum price has risen above 5-day average line, but will find downward pressure to break the previous high level in the short term. Although the supply surplus existed in the market, aluminum price will remain high in the short term due to strong LME aluminum market, as well as select suppliers’ unwillingness to move cargos.

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