[Al] SMM Morning Review - 2009/9/3 Aluminum Market

SHANGHAI, Sept. 3 (SMM) -- The US ADP Employer Services released a report on Wednesday that the number of employment in private sector fell by 298,000 during August, while this number was revised to a decline of 360,000. The US Commerce Department announced last night that the factory orders in July increased by 1.3%, with market forecast of a 2.2% growth.

    The economic data from the US indicate the economy is recovering. In addition, the US stock markets stabilized, and LME base metal prices regained some losses. LME aluminum prices closed at USD 1,850.3/mt, unchanged from previous trading day, while LME aluminum inventories increased by 1,375mt to 4,614,325mt. In domestic market, stable LME aluminum prices will help support SHFE aluminum prices limitedly. In addition, September is traditional peak demand period, stimulating market sentiment. In this context, any downward room for SHFE aluminum prices will be limited, and aluminum prices are expected to fluctuate around RMB 15,000/mt in the short term.

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