[Al] SMM Morning Review - 2009/8/27 Aluminum Market

SHANGHAI, Aug. 27 (SMM) -- The U.S. Commerce Department announced the durable goods orders in July increased by 4.9%, higher than previous forecast of a 3.0% growth rate, the highest growth rate since July 2007. Non-defense capital data excluding aircraft declined by 0.3%, exerting limited impact on the market. China's State Council said on Wednesday that China authorities will further strengthen the monitoring and regulation of industrial overcapacity and repeat construction given slow development of current industrial structure adjustment, generating the market concerns over Chinese demand.

    The negative factors in Chinese aluminum industry exerted great pressure on LME aluminum market. LME aluminum three-month contract prices closed at USD 1,860/mt, down USD 33/mt. LME aluminum prices lacked upward momentum after previous positive macro economic data have absorbed by the market, and will have further downward room in the future. LME aluminum prices are expected to fluctuate in the USD 1,820-1,900/mt range today, while SHFE aluminum prices are expected to move narrowly above RMB 15,000/mt and test the support level of RMB 14,800/mt today.

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