SHANGHAI, Nov. 12 (SMM) -- LME aluminum prices opened at USD 1,956/mt yesterday, with the highest price of USD 1,985/mt and the lowest price of USD 1,952/mt, and closed at USD 1,967/mt finally. The trading volumes were 4,326 lots today. LME aluminum inventories increased by 7,175 mt to 4,543,075 mt.
Yesterday China released imports, exports and output of base metals in October. Although China's copper imports dropped significantly on a monthly basis, the positive economic data offset any negative impact from declines in copper imports. China's industrial output increased by 16.1% YoY during October, hitting a 19-month high and approaching to March levels of 17.8% in 2008, which generated investor optimistic expectations over China's GDP in 4Q. The US dollar index weakened increasingly and has fallen below 75, exerting strong support on base metal prices.
However, the rising LME aluminum inventories resulted in the wait-and-see sentiment by investors, and LME aluminum prices will advance further unless SHFE aluminum prices follow suit today. SHFE three-month contract aluminum prices are expected to climb slightly to the range of RMB 15,150-15,250/mt today.
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