SHANGHAI, May 24 (SMM) -- LME base metals prices closed up last Friday due to a weaker US dollar. LME aluminum prices opened at USD 1,985/mt, with the highest level and the lowest level at USD 2,065/mt and USD 1,974/mt, respectively, and finally prices ended at USD 2,057/mt, up USD 65/mt compared with the previous trading day, or up 3.26%. Total trading volumes reported 154,318 lots, and total positions were 709,856 lots, up 3,530 lots. LME aluminum inventories declined slightly by 4,725 mt to 4,583,975 mt.
The US Senate, bringing Congress to the brink of passing the most comprehensive regulation of the financial industry since the Great Depression, approved a bill that imposes restrictions on proprietary trading by banks and creates a consumer protection agency designed to prevent lending abuses. Investors purchased bank stocks which experienced significant declines previously in the afternoon, supporting the US stocks to close up.
German lower house of parliament voted 319 to 73 in favor of contributing as much as EUR 148 billion (USD 186 billion) to indebted European states to backstop the euro, easing market concerns. The upper house of parliament also passed the measure, sending it on to German Chancellor Merkel for signature. This news eased the negative impact from Germany regulator's bans on naked short selling and naked credit-default swaps of euro-area government bonds. The US dollar index fell to a range of 85.1-86 last Friday, and base metals prices returned to an upward track in response. LME aluminum inventories declined slightly after three-day increases of 110 kt, allowing LME aluminum prices to climb to above USD 2,000/mt.
SHFE aluminum prices open slightly higher today positively affected by LME aluminum prices, and SHFE 1008 aluminum contract prices are expected to move narrowly between RMB 15,100-15,300/mt, with special focus on other base metals trends and stock market movements.
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