SHANGHAI, July 15 (SMM) -- The US business inventories in May rose by 0.1% compared with April levels, better than expected, but minutes released yesterday of a June meeting of Federal Reserve reveal officials were pessimistic toward economic outlook, triggering market concerns over whether or not the US economy can maintain the strong momentum in the future and offsetting positive impact from stronger-than-expected corporate quarterly results. The US stocks weakened, with Dow Jones Industrial Average closing at 10,366.72 points, only up 3.7 points. Any increases in LME base metals prices were limited as well, but the weakening US dollar index supported base metals prices to some extent, so LME base metals prices showed mixed trends last night.
LME aluminum prices opened at USD 1,998/mt, with the highest level and the lowest level at USD 2,025/mt and USD 1,988.75/mt, respectively, and finally ended at USD 2,010/mt, up USD 14/mt compared with the previous trading day, or up 0.7%. Total trading volumes reported 128,611 lots, and total positions were 753,125 lots, down 2,880 lots. LME aluminum inventories declined by 7,650 mt to 4,375,900 mt. Market players are waiting for the release of China's economic data including CPI and GDP, which will greatly affect base metals prices trends.
SHFE aluminum prices opened slightly higher, and technical indicators show an unclear market direction. Today is the last trading day of SHFE 1007 aluminum contract, and SHFE 1010 aluminum contract is gradually becoming the most active contract, with special focus on China's economic data due for release today and China's A-shares market trends after the Agricultural Bank of China (ABC) starts trading on the Shanghai Stock Exchange.
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