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

SHANGHAI, Sept. 9 (SMM) -- Last night, the US dollar index dropped significantly below the support level of 78, setting a new record low for 2009. As all countries made commitments that they will continue to implement economic stimulus measures before the economic recovery in G20 meeting during last weekend, and the loose monetary policy weighed on the US dollar. In the mean time, the positive economic data from the euro zone also weakened the demand for US dollar risk aversion, so US dollar depreciated.

    LME base metal prices closed up boosted by plunged US dollar index. LME aluminum prices closed at USD 1,894.3/mt, up USD 29.3/mt, and LME aluminum inventories declined by 1,875mt to 4,600,900mt. In domestic market, SHFE aluminum prices climbed, and sharp growth in positions indicates the increasing purchasing interest. However, aluminum prices received great pressure from RMB 15,100/mt. SHFE aluminum prices are expected to remain high today.

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