[Al] CBI Morning Review - 2009/7/2 Aluminum Market

SHANGHAI, July 2 (CBI China) -- The U.S. Department of Commerce announced on Wednesday that the US construction spending during May decreased by 0.9% to USD 964 billion, while analysts predicted it would decrease by 0.5%. The National Association of Realtors (NAR) announced on Wednesday that the US pending home sales index during May increased by 0.1% to 90.7, flat at estimated level. The U.S. Institute for Supply Management (ISM) announced that the manufacturing index in June was 44.8, the highest level since August 2008, higher than estimated level of 44.5. The positive economic data dampened the US dollar.

    The strong US manufacturing data generated the expectations over economic recovery, coupled with weakened US dollar, LME aluminum price closed at USD 1,665/mt, up USD 35/mt, and the inventories declined by 3,525mt to 4,394,825mt. The increasing supply pressure during seasonal low demand period weighed on aluminum price, so aluminum prices will fluctuate with a sign of fall in the short term.

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