SHANGHAI, July 26 (SMM) -- LME base metals prices were mixed last Friday. LME aluminum prices opened at USD 2,030/mt, with the highest level and the lowest level at USD 2,070/mt and USD 2,025/mt, respectively, and finally ended at USD 2,030.5/mt, down USD 14.5/mt compared with the previous trading day, or down 0.7%. Total trading volumes reported 119,973 lots, and total positions were 728,345 lots, up 2,524 lots. LME aluminum inventories declined further by 5,975 mt to 4,409,975 mt.

The Committee of European Banking Supervisors (CEBS) said last Friday seven of the 91 European banks that underwent stress tests have failed the health checks, but this negative result did not have strong negative impact on the market, and the market sentiment generally remained bullish. The US better-than-expected corporate earnings including Microsoft helped boost the European and the US stock markets to close with gains. Base metals prices strengthened continuously, and LME aluminum prices set a new high last Friday since June 1st, 2010, but later slipped due to technical resistance.

SHFE aluminum prices opened slightly higher today, and will test the resistance level of 60-day moving average today. Special attention should be paid to other base metals and financial markets. SHFE 1010 aluminum contract prices jumped to RMB 15,200/mt previously, and will likely undergo corrections once prices face resistance. Meanwhile, whether or not spot prices can keep pace with SHFE aluminum prices will also affect SHFE aluminum prices today. SMM predicts spot discounts may expand further in view of recent weak demand. 

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