SHANGHAI, June 2 (SMM) -- The Purchasing Managers Index (PMI) for China's manufacturing sector has fallen consecutively to 53.9% in May, while the PMI in the Euro zone also dropped for three consecutive months. Meanwhile the unemployment rate in the Euro zone was 10.1%, setting a new high over 10 years, and the euro was sold off sharply as a result, and the euro dropped below 1.22 against the US dollar, setting a record low. The Bank of Canada raised its benchmark interest rate by 25 basis points, and the US stocks plunged by over 1%, and crude oil prices closed down 1.88%. LME aluminum prices fell to break the 5-day and 10-day moving averages, with prices hitting the daily low of USD 1,977/mt. However, the manufacturing and construction spending in the US was better than expected, helping support stocks and commodity markets. LME aluminum prices finally closed at USD 1,995/mt, down USD 30/mt compared with the previous trading day. Trading volumes were 134,620 lots, and total positions increased by 6,894 lots to 738,253 lots. LME aluminum inventories declined by 5,225 mt to 4,556,175 mt.
LME aluminum prices opened at USD 1,985/mt on the electronic trading during Asian trading period today, and are expected to dip to the previous low of USD 1,952/mt.
SHFE aluminum prices are under the pressure of all moving averages today, with prices expected to move narrowly between RMB 15,000-15,150/mt.
CHALCO cut alumina spot prices by RMB 150/mt or 5.0% to RMB 2,850/mt from the previous RMB 3,000/mt on June 1st, 2010.
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