[Al] SMM Morning Review - 2009/8/13 Aluminum Market

SHANGHAI, Aug. 13 (SMM) -- Last night, the U.S. Federal Reserve Open Market Committee announced that the interest rate of federal funds rate will remain at 0-0.25%, and Ben Bernanke, Chairman of Federal Reserve, once again denied the possibility the interest rate will be lifted in the short term. Meanwhile, he extended the treasury bond purchase plan which originally scheduled in September to October in an attempt to stabilize the bond market. Last night, the US stocks closed higher due to market expectations economic recovery, while the US dollar index rebounded, which also helped support base metal prices to move up. Overnight LME aluminum prices closed at USD 1,974.5/mt, up USD 45.5/mt, and inventories remained at 4.56 million mt. SHFE aluminum prices will open high, and three-month contract prices are expected to climb to RMB 15,000/mt. Aluminum prices are expected to continue to fluctuate in the short term given no clear market directions.

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