SHANGHAI, Jan. 29 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,155.2/mt, with the highest level and lowest level at USD 2,172/mt and USD 2,086/mt, respectively, and finally prices ended at USD 2,100/mt. Total trading volumes reported 13,563 lots, and positions were 695,508 lots. LME aluminum inventories declined by 4,600 mt to 4,619,200 mt.
Both LME and SHFE base metals prices plunged triggered by global concerns over China's move to tighten loans and the US measures on financial regulation. However, the global economy has recovered gradually, so the short-term corrections in base metals prices will help promote the long-term economic development in 2010. The US Department of Commerce announced that the durable goods orders in December rose by 0.3%, lower than the estimate of 2.0%. The US Department of Labor released that the number of initial application for unemployment benefits last week dropped to 470,000, higher than Reuters' forecast of 450,000. Obama delivered his first State of the Union address on Wednesday and said the employment will be the major task in 2010, and will eliminate all capital gains taxes on small business investment and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment in an effort to boost employment.
SHFE 1005 aluminum contract fell below the support level of RMB 16,500/mt yesterday, and LME aluminum prices slumped as well, so SMM predicts SHFE aluminum prices will get support at RMB 16,000/mt today, with prices expected to move in the RMB 16,000-16,400/mt range.
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