[Al] SMM Morning Review - 2009/8/31 Aluminum Market

SHANGHAI, Aug. 31 (SMM) -- The US Department of Commerce announced last Friday that the personal income in July improved to be flat from the previous month's decline of 1.1%, but worse than the expected increase of 0.1%. However, the personal spending in July grew by 0.2% from the previous month's decline of 1.1% driven by the US Government's "Cash for Clunkers" program, in line with expected. The University of Michigan and Reuters announced a joint investigation last Friday that the consumer confidence index in August rose to 65.7 from early month levels of 63.2, but still lower than July levels of 66.0 and a decline for two consecutive months, but better than analysts forecast of 64.0.

    The improved US personal spending boosted investors' interests. LME copper prices grew to USD 6,500/mt last Friday, setting a record high for 2009, while LME aluminum prices closed at USD 1,895/mt, up USD 11.5/mt, restricted by weak market fundamentals. LME aluminum inventories increased by 625mt to 4,614,350mt. In domestic market, SHFE aluminum prices faced great resistance above RMB 15,000/mt, and are expected to move narrowly in the short term.

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