SHANGHAI, Nov. 27 (SMM) -- LME aluminum prices opened at USD 2,050/mt yesterday, with highest and lowest level at USD 2,053.5/mt and USD 2,008/mt, respectively, and finally prices ended at USD 2,010/mt. Total trading volumes reported 6,081 lots, and positions were 695,433 lots. LME aluminum inventories increased by 8,075 mt to 4,602,725 mt.
Yesterday, the US markets were closed for Thanksgiving Day holiday, leaving slim transactions. On Thursday, the European stock markets plunged, with a daily decline setting a new high since April, since the state-owned Dubai World was in huge debt and proposed to delay debt payments. This news also triggered investor concerns over economic recovery, helping push up risk preference of US dollar. In this context, the US dollar index rebounded strong after hit a new low on Wednesday, and is expected to fall slightly in the near future, with 75.3 as the strong pressure level.
Base metal prices showed strong performance due to expectations of inflation recently, neglecting actual market demand. However, domestic stock markets showed signs of declines recently, resulting in the withdrawal of large amount of speculative funds, and raising market sentiment of risk-avoidance. Hence, SMM predicts SHFE three-month contract aluminum prices will fall further today, with prices expected to move in the RMB 15,450-15,600/mt range.
Copyright © 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.
None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: email@example.com or tel:86-21-51550040