SHANGHAI, Mar. 22 (SMM) -- Yesterday, LME aluminum prices opened at USD 2,275/mt, with the highest level and lowest level at USD 2,284/mt and USD 2,247/mt, respectively, and finally prices ended at USD 2,263.5/mt. Total trading volumes reported 5,704 lots, and positions were 700,109 lots. LME aluminum inventories declined by 6,475 mt to 4,611,725 mt.
India's central bank increased the benchmark interest rate by 25 basis points to 3.5% from a record low of 3.25% and raised the repurchase rate to 5% from 4.75% on Friday in order to combat the inflation pressure, and said it will continue to take more measures in the future to control the price increases. This move caused global investor concerns over the commodity economy driven up by Indian demand, and pushed up market demand for the risk-avoidance of the US dollar index, and base metals prices declined as a result. The good solution to Greece debt crisis failed to be reached, and the disadvantages of the financial system in the Euro area emerged, causing the demand for risk-avoidance of the US index to increase further recently, which in turn depressed base metals prices.
SMM believes SHFE 1006 aluminum contract prices will move in the RMB 16,600-16,900/mt range today, with long momentum still weak.
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