SHANGHAI, Aug. 18 (SMM) -- Market players were concern about economic recovery due to weak US consumer confidence index. Bulk commodities and global stock markets dropped in order to avoid high-risk assets. Meanwhile, the US dollar became popular as the currency for risk avoidance. Last night, the US stocks plummeted by 2% to the lowest level over 3 weeks, and the US dollar index increased to 79.
Overnight LME base metal prices slipped given strengthened US dollar and dropping US stocks. LME aluminum prices regained most losses due to purchases at lower prices, and closed at USD 1,972.5/mt, down USD 2.5/mt. LME aluminum inventories declined by 5,075mt to 4,551,600mt. The long-term upward trend for aluminum prices remained unchanged despite of plunged stock markets yesterday, so any downward room for aluminum prices will be limited in anticipation of the re-entrance of speculative funds, and aluminum prices are expected to find support at 30-day average line.
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