SHANGHAI, June 21 (SMM) -- LME base metals prices weakened last Friday due to market concerns over the weaker-than-expected economic recovery. Meanwhile, the seasonal low demand period for metals is drawing near, weighing down China's metals markets, which in turn exerted pressure on LME metals prices. LME aluminum prices opened at USD 1,951/mt, with the highest level and the lowest level at USD 1,972/mt and USD 1,933/mt, respectively. LME aluminum prices reversed some previous losses and finally ended at USD 1,940/mt, as Dow Jones Industrial Average closed with gains, the US dollar weakened, and crude oil prices held steady at USD 77/bbl. Total trading volumes reported 202,459 lots, and total positions were 733,000 lots, up 427 lots. LME aluminum inventories declined by 7,025 mt to 4,474,175 mt.
China's central bank decided to proceed further with the reform of the RMB exchange rate on June 19th, increasing the flexibility of the RMB exchange rate and raising the expectations of RMB appreciation, and large amounts of speculative funds flowed into commodity markets as a result. LME aluminum prices rebounded to USD 1,970/mt in the morning on Monday. Crude oil prices surged to USD 78/bbl, stimulating SHFE aluminum prices to open higher at RMB 14,645/mt, up by nearly RMB 100/mt, with prices standing above the 10-day moving average. SHFE 1009 aluminum contract prices will move around RMB 14,700/mt today, and spot aluminum prices will move between RMB 14,400-14,500/mt.
To contact the writer on this report: Jiangning@smm.cn
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