SHANGHAI, Aug. 23 (SMM) -- Last Friday, a European Central Bank official said the central bank should assist financial institutions to prevent year-end liquidity tensions, and this comment caused the euro to decline to a 5-week low, and the US dollar index moved higher to 83 in response. As market concerns spurred by a stream of negative economic data still persisted, LME base metals prices closed with declines again.
LME aluminum prices opened at USD 2,080/mt, and later dipped gradually to USD 2,020/mt. At the tail of trading, LME aluminum prices reversed some losses supported by a weaker US dollar and after significant price declines, with prices finally closing at USD 2,040/mt, with a drop of 1.3%. Total trading volumes were 170,259 lots, and total positions were down more than 3,000 lots. LME aluminum inventories increased slightly by 150 mt to 4,464,825 mt.
SHFE aluminum prices continued to open lower today, and market players predict aluminum consumption may improve in early 4Q, and the possible expanding demand is expected to push up aluminum prices. However, aluminum prices will continue to undergo corrections for some time as actual demand fails to improve and financial market sentiment is bearish currently.
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