[Al] SMM Morning Review - 2009/8/11 Aluminum Market

SHANGHAI, Aug. 11 (SMM) -- The exchange rate of EUR against USD has fallen for 5 consecutive days, as market players predict the US economy will recover more rapidly than Europe, and the US dollar index rebounded to greater than 79. On Wednesday, the FED will hold a two-day monetary policy meeting, and investors remain cautious before the meeting, which caused the US stocks to slide last night.

    LME base metal prices fell negatively affected by stronger US dollar and dropping US stocks. LME aluminum prices closed at USD 1,969.5/mt, down USD 52/mt, and the inventories increased by 4,200mt to 4,566,850mt. The downstream processing companies remained reluctant to accept current high aluminum prices, and the sluggish spot transactions generated market concerns with regard to the upward room for aluminum prices, while the overall strong market environment will help aluminum prices to fluctuate above RMB 15,000/mt narrowly in the near future. 

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