SHANGHAI, July 22 (SMM) -- LME base metals prices closed with gains last night. LME aluminum prices opened at USD 1,983/mt, with the highest level and the lowest level at USD 2,024/mt and USD 1,969.25/mt, respectively, and finally ended at USD 2,008/mt, up USD 36/mt compared with the previous trading day, or up 1.8%. Total trading volumes reported 146,862 lots, and total positions were 732,138 lots, down over 10,000 lots. LME aluminum inventories increased further by 2,925 mt to 4,420,025 mt.
The Federal Reserve's Chairman Ben Bernanke yesterday expressed his concerns over future economy to the Congress, raising pessimistic sentiment. The US stocks dived in response, with Dow Jones Industrial Average falling by 109 points. The European stock markets closed with a gain of 1.2% pushed up by mining shares, especially copper mining companies. LME copper market left a signal of supply tightness, boosting overall base metals markets. Although the US dollar index rose to near 83.2, base metals prices remained on an upward track. LME aluminum prices rose as well, but increases in LME aluminum prices helped drag down market fundamentals.
SHFE aluminum prices opened flat today, shrugging off any increases in LME aluminum prices last night. SHFE aluminum prices still lack upward momentum despite that prices have stood above RMB 15,000/mt for several consecutive days, and SMM predicts SHFE 1010 aluminum contract prices will hover between RMB 14,900-15,100/mt.
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