SHANGHAI, Aug. 5 (SMM) -- LME base metals prices closed with gains yesterday after falling temporarily. LME aluminum prices opened at USD 2,205/mt, with the highest level and the lowest level at USD 2,245/mt and USD 2,195/mt, respectively, and finally ended at USD 2,228/mt. Trading volumes were 131,857 lots, and total positions were 716,605 lots, down 2,477 lots. LME aluminum inventories increased by 1,225 mt to 4,404,975 mt.
The Institute for Supply Management (ISM) announced on Wednesday the non-manufacturing index in July was 54.3, and this index has risen for seven consecutive months. Figures from ADP Employer Services showed U.S. payrolls, excluding government agencies, climbed by 42,000 in July, compared with 30,000 economists expected. These positive economic data helped ease market concerns over the economic development and labor market, and improved investors' risk appetite, which helped support the European and the US stock markets to close with gains. Although the US dollar rebounded mildly, base metals prices continued to move on an upward track due to positive expectations of consumption. LME aluminum prices stabilized at USD 2,200/mt, and trading sentiment was weak, but trading volumes increased. Although LME aluminum inventories grew slightly yesterday, the positive economic environment still helped LME aluminum prices close with gains.
SHFE aluminum prices opened slightly higher today, and fluctuating China's stock markets will affect aluminum price increases in the following two days, but SHFE aluminum prices will remain on an upward track, with SHFE 1011 aluminum contract prices expected to stand steady above the 5-day moving average.
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