SHANGHAI, Jan. 12 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,322.2/mt, with highest and lowest level at USD 2,362/mt and USD 2,313/mt, respectively, and finally prices ended at USD 2,336.8/mt. Total trading volumes reported 9,168 lots, and positions were 703,699 lots. LME aluminum inventories declined by 5,500 mt to 4,607,900 mt.
The US dollar index fell to 77 due to temporarily waning expectations of interest rate hikes, helping support base metals prices. Crude oil prices slipped after climbing to USD 84/barrel, but crude oil prices still have upward momentum in the long run along with the economic recovery, and the increasing energy costs will in turn support future aluminum prices. Domestic bad weather will not likely report substantial improvement in the short term, and the support of coal for power generation in some regions remained tight. Although no news were reported with regard to production cuts at aluminum producers, large amounts of speculative funds will flow into aluminum market, and SMM predicts SHFE 1004 aluminum contract will likely advance further, with strong optimistic market sentiment unchanged.
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