SHANGHAI, Dec. 1 (SMM) -- LME aluminum prices opened at USD 2,025/mt yesterday, with highest and lowest level at USD 2,065/mt and USD 2,010/mt, respectively, and finally prices ended at USD 2,065/mt. Total trading volumes reported 9,884 lots, and positions were 705,339 lots. LME aluminum inventories declined by 900 mt to 4,599,475 mt.
Market concerns over Dubai crisis eased, and market demand for US dollar risk-avoidance declined as well, and the US dollar index hit the highest level of 74.96 yesterday, with great pressure at 75, and showing a downward trend, which helped support base metal prices to move up. Meanwhile, crude oil prices recovered slightly, hitting the highest level of USD 78/barrel, which helped improve market confidence. Investors increased purchase volumes after commodity prices experienced declines last Friday, driving up base metal prices. In addition, the US dollar index is expected to weaken in the long run, and the expectations of inflation will also help support base metal prices to climb in the long term.
SMM predicts SHFE aluminum prices will advance further to a range of RMB 15,550-15,700/mt today, supported by strong LME aluminum prices.
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