SHANGHAI, Oct. 23 (SMM) -- LME aluminum prices opened at USD 1,961.2/mt yesterday, with the highest price of USD 1,997.5/mt and the lowest price of USD 1,954.2/mt. LME aluminum prices faced great downward pressure at USD 2,000/mt, and closed at USD 1,960/mt finally. Trading volume was 10,579 lots today, and LME aluminum inventories dropped by 4,400mt to 4,585,500mt.
The US dollar index rebounded to 75.51 technically yesterday. China's GDP growth rate reached 8.9% in 3Q, and China has no problem to reach the annual target of 8% economic growth, and as the largest consumer of industrial metals, China's favorable economic data helped offset the negative impact from rising US dollar index on base metal prices. The US dollar will remain weak in the long run, and the US dollar index fell back to 75, stimulating base metal prices to rally.
Recent positive economic data and the dollar depreciation increased the attractiveness of commodities to investors, and further upward momentum for aluminum prices was strong, but the relatively ample market supply in China hampered any upward movement for aluminum prices, and SHFE aluminum prices will fluctuate in the RMB 14,950-15,100/mt range today.
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