SMM Morning Review - 2010/3/11 Aluminum Market

SHANGHAI, Mar. 11 (SMM) -- Yesterday, three-month LME aluminum prices closed at USD 2,225/mt, down USD 28/mt. Positions reported 709,444 lots, up slightly. CRB index closed at 274.62 on March 10th, down 0.17 or down 0.06%. The US dollar index declined, and the risk appetite improved in the market, helping boost nonferrous metals futures market which enjoys high yield and high risk. However, the US wholesale inventories dropped by 0.2% in January unexpectedly supported by significantly growing demand, while the wholesale inventories in January would increase by 0.2% according to previous prediction. The wholesalers’ sales report show the US wholesalers’ sales amount increased by 1.3% to USD 346.7 billion in January after seasonal adjustment, lower than previous forecast, which depressed metals market sentiment. SMM predicts SHFE aluminum prices will fluctuate around RMB 17,000/mt in the near term.

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