SHANGHAI, Jan. 18 (SMM) -- Last Friday, LME aluminum prices opened at USD 2,334/mt, with the highest level at USD 2,337/mt, and finally prices ended at USD 2,300/mt. Total trading volumes reported 6,998 lots, and positions were 703,284 lots. LME aluminum inventories declined by 8,450 mt to 4,584,950 mt.
The US dollar index rebounded to 77.4 last Friday, and closed above 77, since the unfavorable expectations of economy in Euro zone, the rumor that German Chancellor Merkel will resign, the news that the European central bank announced that it will not raise the interest rate, as well as the Greece's debt crisis all helped support the US dollar index to rebound. However, the economic data released by the US government were mixed, resulting in confidence shortages of investors. The Reuters / University of Michigan's January consumer confidence index was 72.8, lower than the estimate of 73.9; the US CPI in December rose by 0.1% compared with November levels, lower than the forecast of a 0.2% growth. Base metals prices fell gradually negatively affected by rising US dollar index, but showing signs of recovering.
SMM predicts SHFE 1004 aluminum contract prices will fluctuate lower today, with prices expected to move in the RMB 17,300-17,600/mt range, and with strong support at RMB 17,200/mt.
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