SHANGHAI, Sept. 2 (SMM) -- On September 1st, China released that the Purchasing Managers Index (PMI) of China's manufacturing sector rose slightly in August, with new order index gaining significantly. Later, the US government announced that the manufacturing index in August was stronger than expected. Market players believe although it is inevitable that global economic growth will slow, concerns over possibly significant declines in economic growth were eased sharply. Investor interest in high-risk assets improved, and the European and the US stocks posted a growth of over 2.5% last night as a result, with Dow Jones Industrial Average closing at 10,269.47 points. In response, the US dollar index weakened to 82.524, while LME base metals prices moved higher led by LME copper prices.
SHFE aluminum prices opened at USD 2,060/mt, with prices easily breaking through the USD 2,100/mt mark, to an intraday high of USD 2,119/mt, and finally prices ended at USD 2,108/mt, up USD 50/mt, or up 2.4%. Total trading volumes were 103,572 lots, and positions were 659,773 lots, up nearly 2,000 lots. LME aluminum inventories jumped by 7,000 mt to 4,435,475 mt.
SHFE aluminum prices extended gains today, and although SHFE aluminum prices were weaker than other base metals, positive market sentiment will help drive SHFE aluminum prices higher. If SHFE 1012 aluminum contract prices can hold steady at RMB 15,700/mt today, prices will continue to move higher to RMB 15,800/mt.
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