SHANGHAI, June 8 (SMM) -- Concerns over the European debt crisis and that Hungarian debt crisis may spread caused the European and the US stock markets to decline again, with mining stocks leading the declines. Dow Jones Industrial Average closed at 9,816, down 115, hitting a new low over seven months, while the European stocks markets also fell by over 1%. The euro closed at 1.1919, with the lowest level reported at 1.1875, while the US dollar index set a new high of 88.71, and crude oil futures closed at USD 71.4/bbl.
LME aluminum prices opened at USD 1,880/mt, with the highest level and the lowest level at USD 1,887/mt and USD 1,828/mt, respectively, and finally prices ended at USD 1,867/mt, down USD 14/mt compared with the previous trading day. Total positions were 773,615 lots, up 9,605 lots. LME aluminum inventories declined by 6,975 mt to 4,525,100 mt.
SHFE aluminum prices hit the downside limit yesterday following SHFE copper and zinc prices trends, with the decline larger than that in LME aluminum prices. LME aluminum prices move narrowly between USD 1,860-1,870/mt in the morning session today, and SHFE aluminum prices are expected to open low but move higher. However, uncertainties surrounding macro economic conditions and other metals prices trends will help limit the upward movements in SHFE aluminum prices, and SMM predicts SHFE aluminum prices will return to RMB 14,500/mt in the short term.
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