[Al] SMM Morning Review - 2009/9/11 Aluminum Market

SHANGHAI, Sept. 11 (SMM) -- The US Labor Department released on Thursday that the number of claims for unemployment benefits during this week (September 5th) dropped to 550,000, while the market forecast was 560,000, increasing market hopes for economic recovery, further pushing up the US stocks, and dampening the US dollar.

    LME lead prices declined by more than 10%, as market players overestimated the impact from lead smelters closures in China after lead poisoning incidents. In the context, LME aluminum prices closed at USD 1,857/mt, down USD 33/mt, and LME aluminum inventories continued to decline by 4,900mmt to 4,593,850mt. In domestic market, dropping LME aluminum prices will dampen SHFE aluminum prices today, but any downward room will be limited. SHFE aluminum prices will move around RMB 15,000/mt narrowly in the short term.

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