SHANGHAI, Feb. 23 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,140/mt, with the highest level and lowest level at USD 2,174/mt and USD 2,125/mt, respectively, and finally prices ended at USD 2,149/mt. Total trading volumes reported 9,234 lots, and positions were 697,754 lots. LME aluminum inventories declined by 7,275 mt to 4,591,375 mt.
LME aluminum prices lost previous gains yesterday negatively affected by falling SHFE aluminum prices. However, the impact from China's move to raise the deposit reserve ratio by 0.5 percentage points before the Chinese New Year holiday has waned, and the wait-and-see sentiment was dominating Chinese market temporarily. The US dollar index continued to move around 80.5, with limited downward room to slip and great pressure to climb. However, the fluctuating US dollar index will provide the moderate environment for recent commodity prices.
In this context, SMM predicts commodity prices will likely move higher in the future following the recovery of Chinese demand, and LME aluminum prices will also experience further gains in the near future in view of previous limited increases compared with other metals. SMM predicts SHFE 1005 aluminum contract prices will stand above RMB 17,000/mt today.
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