SHANGHAI, May 7 (SMM) -- Last night, the US dollar index surged to 84, and base metals prices continued to fall. LME aluminum prices opened at USD 2,120/mt, but later fell below USD 2,100/mt negatively affected by a host of negative economic news and falling crude oil prices, with the highest level and the lowest level at USD 2,137/mt and USD 2,060/mt, respectively, and finally prices ended at USD 2,103/mt, down USD 18/mt compared with the previous trading day, or down 0.85%. Total trading volumes reported 254,570 lots, and total positions were 724,774 lots, up 5,212 lots. LME aluminum inventories declined by 6,400 mt to 4,511,675 mt.
Dow Jones Industrial Average slumped, generating global panic sentiment, and market concerns over the debt crisis in Euro zone still spread, further improving the risk aversion by investors, and the euro fell to 1.25 in response, pushing up the US dollar index to near 84. Crude oil prices have fallen for three consecutive days to break through USD 78/bbl, eroding its support for LME aluminum prices.
SHFE aluminum prices will face difficulty in getting support at the previous low of RMB 15,700/mt today, with prices expected to move around RMB 15,500/mt. Special attention should be paid to stock market trends and the US dollar index trends today.
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