SHANGHAI, Aug. 6 (SMM) -- LME base metals prices closed with declines yesterday. LME aluminum prices opened at USD 2,230/mt, with the highest level and the lowest level at USD 2,230/mt and USD 2,195/mt, respectively, and finally ended at USD 2,203/mt, down USD 25/mt compared with the previous trading day, or down 1.1%. Trading volumes were 96,513 lots, and total positions were 715,167 lots, up 1,438 lots. LME aluminum inventories declined by 4,475 mt to 4,400,500 mt.
Rumors report China's Government plans to curb housing loans in some cities, and China's banking regulator told lenders last month to assess the impact if property prices drop 50% to 60% in cities where they have advanced excessively, triggering market concerns that China's property measures will hurt demand for base metals, and investors took a cautious attitude in response. The US government announced that the number of US initial jobless claims last week were higher than expected, depressing market sentiment and spurring market concerns over the US non-farm employment data due to release tonight. Base metals prices came under selling pressure due to these negative economic news, and LME base metals prices closed with declines despite that the US dollar index weakened further. LME aluminum inventories ended the two-day growing trends, falling by nearly 5 kt, but trading sentiment was sluggish amid negative economic environment.
China's curbs on property markets depressed market sentiment, and SHFE 1011 aluminum contract prices opened lower today, with prices falling to below the 5-day moving average. SHFE 1011 aluminum contract prices are expected to post further declines, with special focus on the impact on base metals prices from China's future macro policies and A-share market movements.
Copyright © SMM. All Rights Reserved
None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: firstname.lastname@example.org