SHANGHAI, Oct. 29 (SMM) -- LME aluminum prices opened at USD 1,988/mt yesterday, with the highest price of USD 2,004/mt and the lowest price of USD 1,907/mt, and closed at USD 1,924/mt finally, down 3.17%. LME aluminum inventories declined by 1,375mt to 4,570,025mt.
The US Department of Commerce announced on Wednesday that the US durable goods orders in September rose by 1.0%, which is in line with expectations, but the US new home sales in September fell by 3.6% on a monthly basis to an annual rate of 402,000 units, lower than market expectation of 440,000 units. The US dollar index climbed to 76.5 again due to concerns about global economic recovery, exerting greater pressure on base metal prices. On Thursday, the US will release its GDP in 3Q, and market players predict it will be positive. If the US GDP is positive, how to withdraw from the current loose monetary policy will be another round of market focus, which will help support the US dollar index.
Yesterday, SHFE aluminum prices soared, but SHFE three-month contract aluminum prices faced great resistance at RMB 15,500/mt and will feel heavy downward pressure due to plunged LME aluminum prices. In addition, China’s Growth Enterprises Market (GEM) will start trading tomorrow, so the capital diversion will also put pressure on futures market. SHFE aluminum prices are expected to fluctuate in the RMB 15,000-15,200/mt range today.
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