[Al] CBI Morning Review - 2009/7/3 Aluminum Market

SHANGHAI, July 3 (CBI China) -- The U.S. Department Labor announced on Thursday that the number of non-farm employment declined by 467,000 during June, much higher than the expected level of 363,000, and the unemployment rate rose to 9.5%, indicating the job market continued to sink in a serious recession. The U.S. Department of Commerce released on Thursday that the factory orders increased by 1.2% during May, while the market players predicted it would increase by 0.8%. The durable goods orders grew 1.8% after revision. The European Central Bank kept interest rates unchanged at 1%, and the President Jean-Claude Trichet warned that the weak economic conditions may dampen the economic recovery until the middle of next year.

    LME base metal prices plunged affected by weak economic data for Europe and US, while LME metal prices gained some previous losses at closing in view of better-than-expected US orders data. LME aluminum price closed at USD 1,639/mt, down USD 26/mt. The inventories increased by 2,500mt to 4,397,325mt. The downstream demand weakened with the approach of seasonal low demand period, limiting upward momentum for SHFE aluminum price, so aluminum price will continue to fluctuate in the short term.

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