SHANGHAI, June 23 (SMM) -- Yesterday, LME aluminum prices opened at USD 1,952/mt, with the highest level and lowest level at USD 1,966/mt and USD 1,928/mt, respectively, and finally prices ended at USD 1,959/mt, down USD 2.5/mt compared with the previous trading day, or down 0.13%. Trading volumes were 166,136 lots, while positions were 747,465 lots, up 1,140 lots. LME aluminum inventories declined by 10,000 mt to 4,457,350 mt.
Last night, sources reported that the UK government will impose a new tax on banks and raise capital gains tax in order to cut fiscal deficit, with the total amount of 40 billion pounds expected from the spending cuts and tax hikes annually by 2015. British finance minister George Osborne pledged to safeguard the nation's top credit rating and to avoid derailing the economic recovery. Meanwhile, Osborne predicted the UK's economic growth will fall to 1.2% in 2010, but will reach 2.3% in 2011. However, investors were still concerned that the UK government's budget deficit cuts will reduce the demand for industrial metals, which will in turn cause LME base metals prices to move lower.
The US National Association of Realtors (NAR) announced on Tuesday that the US existing home sales declined by 2.2% to an annual rate of 5.66 million in May, lower than the expected level of 6.12 million, while the existing home sales in April were revised to an annual rate of 5.79 million. The unexpected falling existing home sales in the US spurred investor concerns that the US economic recovery will slow in the future, and the US stocks retreated as a result.
SHFE 1009 aluminum contract prices closed above the 5-day moving average yesterday, and opened lower in the morning session today. SMM predicts SHFE 1009 aluminum contract prices will test the support level of 5-day moving average today if domestic A-shares market reports no significant improvement.
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