SHANGHAI, May 11 (SMM) -- The announcement of emergency aid worth EUR 750 billion (USD 970 billion) for Greece in Euro zone helped support LME base metals prices to close up last night. LME aluminum prices opened at USD 2,099/mt, with the highest level and the lowest level at USD 2,157/mt and USD 2,098/mt, respectively, and finally prices ended at USD 2,149/mt, up USD 76/mt compared with the previous trading day, or up 3.67%. Total trading volumes reported 175,657 lots, and total positions were 733,370 lots, up 24 lots. LME aluminum inventories declined by 5,125 mt to 4,501,100 mt, near a one-year low.
European Union finance ministers, central bankers, and the International Monetary Fund (IMF) hammered out a EUR 750 billion emergency aid package aimed at stabilizing broader markets and resolving the Greek debt crisis that has threatened to sink the euro in weekend talks, which was the largest one in more than tow years since G20 leaders pumped money into economies after Lehman Brothers' collapse. The euro rebounded strongly in response, and the US dollar index fell as a result, with the index falling below 83. However, the US dollar index rebounded slightly later given market concerns over the prospect and implementation of the emergency aid package, and base metals prices only experienced increases during the Asian trading period. Market confidence in the demand growth was growing, but the uncertainty surrounding financial markets will serve as the major factor behind future metal price trends.
SMM predicts SHFE aluminum prices will open slightly higher, and special attention should be paid to China’s CPI to be released today, as well as the Shanghai Composite Index trends.
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