SHANGHAI, Feb. 24 (SMM) -- Yesterday, LME aluminum prices closed at USD 2,115/mt, down USD 34/mt. CRB index closed at 272.45, down 1.56%, and commodity futures were on a downward track.
The Conference Board announced that the US consumer confidence index fell to 46 during February, lower than January levels of 56.5 after revision, also much lower than economists' prediction of 54.8. The US consumer confidence index declined by more than 10 points, generating market concerns over outlook on consumer spending, and resulting in plunging stock and crude oil markets. Dow Jones Industrial Average fell by 100.97 to 10,282.41, down 0.97%, hitting a record low closing level this week. Standard & Poor's 500 index fell by 13.41 to 1,094.6, down 1.21%. Nasdaq Composite Index fell by 28.59 to 2,213.44, down 1.28%. The uncertain economic outlook caused investors to pull capital from commodity markets.
Market consumption recovered slowly recently, and the increasing inventory pressure also caused aluminum prices to fluctuate. Since most domestic downstream producers will start operations after March, market consumption is expected to improve gradually from March, and the optimistic expectations of consumption may help push up aluminum prices at that time. SMM predicts SHFE three-month contract aluminum prices will move in the RMB 16,700-17,000/mt range today.
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