SHANGHAI, Mar. 4 (SMM) -- Three-month LME aluminum prices closed at USD 2,200/mt, up USD 30/mt. Positions reported 703,368 lots, and positions increased slightly, and transactions were stable. CRB index closed at 277.71 on March 3rd, up 2.58.
Greek Prime Minister George Papandreou announced 4.8 billion euros ($6.6 billion) of additional deficit cuts as he tries to convince European allies and investors he can tame the region's biggest budget gap. Greek bonds rose to their highest in three weeks on the measures, including higher fuel, tobacco and sales taxes. The plan will also cut by 30% three bonus-salary payments to civil servants. Public workers already had their wages frozen and benefits cuts, and unions have called for new strikes over this plan. The Greek plan pushed up the Euro, and the US dollar tumbled in response, and LME nickel market became bullish as a result.
The US job market and non-manufacturing data also boosted commodity market sentiment. The US ADP Employer Services released that the civilian employment declined by 20,000 in February, with the decline lower than economist prediction of a decline of 50,000. The Institute for Supply Management announced that the US non-manufacturing businesses expanded at a faster pace than expected. Domestic consumption remained weak, and aluminum inventories increased further, both resulting in the weak price movements of SHFE aluminum, and the situation of weak SHFE aluminum prices and strong LME aluminum prices continued. SMM predicts SHFE 1006 aluminum contract prices will break through the resistance level of RMB 17,000/mt.
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