SHANGHAI, Mar. 18 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,250/mt, with the highest level and lowest level at USD 2,303/mt and USD 2,250/mt, respectively, and finally prices ended at USD 2,295/mt. Total trading volumes reported 8,594 lots, and positions were 704,582 lots. LME aluminum inventories increased by 8,250 mt to 4,546,025 mt.
The US Federal Reserve's decision on interest rate exerted selling pressure on the US dollar index. In addition, the UK Office for National Statistics released on Wednesday that the number of applications for unemployment benefit in February declined unexpectedly, with the decline setting a record low since 1997, signaling the recovery in the UK economy is strengthening, and the US dollar remained weak currently in response, with the index moving below 5-day, 10-day, 20-day, and 40-day moving averages. In this context, commodity prices gained upward momentum supported by the weakening US dollar index. Meanwhile, Chinese Government's statement after the release of higher-than-expected CPI level indicates the interest rate hikes will not come soon, opening possibility commodity prices will rebound in the short term.
SMM predicts SHFE 1006 aluminum contract prices will advance to a range of RMB 16,750-16,950/mt today in view of strong LME aluminum prices, but the pressure from high-end is relatively strong, and market confidence has not fully recovered.
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