SHANGHAI, July 19 (SMM) -- LME base metals prices retreated last Friday due to weak economic data in the US. LME aluminum prices opened at USD 2,012/mt, with the highest level and the lowest level at USD 2,030/mt and USD 1,975/mt, respectively, and finally ended at USD 1,979/mt, down USD 38/mt compared with the previous trading day, or down 1.89%. Total trading volumes reported 107,928 lots, and total positions were 753,496 lots, down 459 lots. LME aluminum inventories increased further by 6,575 mt to 4,375,150 mt.
Last week, investors adopted a cautious attitude due to weaker-than-expected manufacturing data in the US and pessimistic minutes of Federate Reserve meeting. Last Friday, the US government continued to release pessimistic economic data. The US initial consumer confidence index in July was 66.5, much lower than Reuters' prediction of 74.5. A stream of negative economic news almost offset all positive impact from China's CPI and GDP data, and the European and the US stock markets closed with declines last Friday as a result, with Dow Jones Industrial Average even falling to 10,097.9 points, down 261.4 points. LME aluminum inventories have grown significantly for two consecutive days, and LME aluminum prices experienced significant declines last Friday, with prices falling below USD 2,000/mt.
SHFE aluminum prices opened slightly lower today, and SHFE 1010 aluminum contract prices fell below the RMB 15,000/mt resistance level. Special attention should be paid to stock markets and US dollar index today, and SHFE 1010 aluminum contract prices are expected to move between RMB 14,800-15,000/mt.
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