[Al] CBI Morning Review - 2009/7/9 Aluminum Market

SHANGHAI, July 9 (CBI China) -- Alcoa announced its fiscal report in 2Q last night, which showed that the company suffered loss of USD 457 million in 2Q, with a loss of Cents 47/share. Previously, the expected loss was Cents 37/share, and the sales revenue fell by 41% to USD 4.24 billion. The huge losses of Alcoa triggered investors concerns that the economic recession may be prolonged.

    The uncertainty in economic recovery generated the market concerns over demand prospects, and overnight crude oil prices and LME base metal prices experienced slumps. LME aluminum price closed at USD 1,557/mt, down USD 58/mt, and the inventories declined by 2,500mt to 4,397,100mt. Although the inventories were large and have experienced increases in spot market, the actual supply remained limited. Meanwhile, the capital liquidity surplus in domestic market helped support aluminum price to some extent. Hence, SHFE aluminum price will continue to fluctuate today, and the struggles between long and short positions will intensify.

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