[Al] SMM Morning Review - 2009/8/4 Aluminum Market

SHANGHAI, Aug. 4 (SMM) -- The U.S. Institute for Supply Management announced on Monday that the manufacturing index in July was 48.9, with the estimated data of 46.2, indicating the shrinkage in manufacturing sector has slowed. In the mean time, the US construction spending in June rose by 0.3%, higher than expected. China Federation of Logistics and Purchasing released the macro-economic leading indicator - official Purchasing Managers Index (PMI) in manufacturing sector in July was 53.3, slightly higher than June level of 53.2, signaling China's economy improved increasingly. Last night, the US dollar index continued to fall to 78, hitting the lowest level over 10 months, since the rising global stock markets and positive economic data helped reduce the US dollar risk aversion demand.

    The weakened US dollar and strong manufacturing data pushed up overnight LME base metal prices. LME aluminum prices closed at USD 1,974/mt, up USD 79/mt, and LME aluminum inventories increased by 4,150mt to 4,564,800mt. SHFE aluminum prices showed worse performance than LME aluminum prices, but the profit-takings of long positions faded the upward momentum for aluminum prices. Particular attentions should be focused on the spot transactions.

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