SHANGHAI, May 10 (SMM) -- Last Friday, the sovereign debt crisis in Euro zone eased slightly, and the US dollar index fell in response, and base metals prices stabilized as a result. LME aluminum prices opened at USD 2,067/mt, with the highest level and the lowest level at USD 2,110/mt and USD 2,050/mt, respectively, and finally prices ended at USD 2,073/mt, down USD 30/mt compared with the previous trading day, or down 1.43%. Total trading volumes reported 197,411 lots, and total positions were 733,346 lots, up 8,572 lots. LME aluminum inventories declined by 5,450 mt to 4,506,225 mt.
The German government approved to provide a loan package worth USD 29.6 billion for Greece in three years last Friday, helping ease market concerns over the debt crisis in Euro zone, and the euro rebounded in response, and the US dollar index fell to 84 from 85 as a result. The US Department of Labor announced last Friday that the non-farm payrolls in April increased by 290,000, higher than Reurters' forecast of a rise of 200,000, while the non-farm payrolls in March were revised to a rise of 230,000. The negative impact from a significant decline of nearly 1,000 points in Dow Jones Industrial Average last Thursday still existed in the market, and the better-than-expected non-farm data still had trouble in pulling the stock market out of the downturn.
SHFE aluminum prices slumped last Friday, and SMM predicts SHFE aluminum prices will remain weak today, with SHFE three-month aluminum contract prices expected to struggle at RMB 15,500/mt.
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