SHANGHAI, June 17 (SMM) -- LME aluminum prices strengthened consecutively during the Chinese Dragon Boat Festival holiday. The European stock markets picked up supported by positive economic data in Europe, and the euro advanced continuously to break through the 30-day moving average, hitting USD 1.2356 in response. Last Friday, the US consumer confidence index in mid-June was higher than expected, and crude oil prices increased to USD 77/bbl. Dow Jones Industrial Average returned to above 10,000 points, hitting 10,429 points. In this context, metals prices advanced, and LME aluminum prices grew by nearly 3% for three consecutive trading days, and kept moving between the 20-day and 30-day moving averages, with prices even breaking through the 30-day moving average and hitting the highest level of USD 2,043/mt, and finally prices ended at USD 2,005/mt. The euro faces growing pressure on its upward track given the European debt crisis remains unresolved, so special focus should be put on the short position momentum, as well as the upward momentum in the US dollar. Meanwhile, LME aluminum prices are also gaining upward momentum to break through the USD 2,000/mt mark.
SHFE aluminum prices open higher today, with prices standing above the 10-day moving average and pointing to the RMB 15,000/mt mark. However, whether or not domestic aluminum prices can move higher will depend on post-holiday speculative buying and downstream purchases. SMM predicts spot aluminum prices will increase first and slip later today, with prices expected to stand steady at RMB 14,400/mt.
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