[Al] SMM Morning Review - 2009/9/24 Aluminum Market

SHANGHAI, Sept. 24 (SMM) -- Yesterday, LME aluminum prices opened at USD 1,900/mt. Although the US dollar index fell to 75.84 points, LME aluminum prices continued to edge down to USD 1,865/mt, and closed at USD 1,872.2/mt finally. Trading volumes continued to drop from previous trading day to 5,403 lots. Although LME aluminum inventories decreased by 4,250/mt, current aluminum inventory of 4,603,250mt remained at a record-high.

    Chinese demand became the major concerns for investors. There is a large possibility the US dollar index will move down gradually, but any positive impact from weakened US dollar index on metal prices will be limited. Yesterday, SHFE aluminum prices dropped after surged, and market players held high interest in sell-off activity when aluminum prices were RMB 15,000/mt. Short positions outperformed long positions. However, any downward room for aluminum prices will be limited given relatively limited low-priced aluminum supply in the market. Aluminum prices are expected to move around RMB 14,900/mt today.

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