SHANGHAI, Aug. 26 (SMM) -- The US economic data released last night was weaker than expected. The building permits in July were revised down, and housing prices fell as well in June, and new home sales in July even slumped to a new low. Although durable goods orders in July rose slightly, but still weaker than expected. Meanwhile, China’s stock markets plummeted on Wednesday, also triggering sell-offs in stock and commodity markets. As a result, investor concerns over the demand outlook of base metals grew continuously, causing LME base metals prices to fall further.
LME aluminum prices opened at USD 2,035/mt, and experienced significant declines in European trading period, with prices even falling below USD 2,000/mt to USD 1,985/mt, and finally prices closed at USD 2,003/mt, down USD 23/mt, or down 1.1%. Total trading volumes were 134,423 lots, and total positions increased by 4,275 lots to 663,208 lots. LME aluminum inventories declined by 3,675 mt to 4,452,700 mt.
LME aluminum prices rebounded this morning, supporting SHFE aluminum prices to open higher. If the Shanghai Stock Exchange Composite Index can return to 2,600 points today, SHFE aluminum prices will climb further in response. SHFE 1011 aluminum prices have jumped above the 5-day moving average, with prices testing the support at this level.
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