SHANGHAI, Sept. 10 (SMM) -- Although the US trade deficit in July was better than expected, and initial jobless claims fell in the week ending September 4th, and the European and US stock markets closed with mild gains, LME base metals prices slumped after a report that Chinese regulators are investigating positions in rubber futures spurred speculation that some traders may be forced to sell commodities.
LME aluminum prices opened at USD 2,155/mt, and later slipped all the way after advancing slightly to USD 2,160/mt, with prices finally closing at USD 2,105/mt, down USD 55/mt compared with the previous trading day, or down 2.5%. Total trading volumes were only 87,041 lots, while positions were 668,118 lots, up only 646 lots. LME aluminum inventories fell by 5,150 mt to 4,410,800 mt, but the panic sentiment offset any positive impact from significant declines in LME aluminum inventories on aluminum prices.
SHFE aluminum prices plummeted significantly yesterday, but opened with gains today. However, the plunging LME aluminum prices overnight, weak SHFE copper and zinc prices, and investor’s more cautious attitude will help limit any upside room for SHFE aluminum prices today, and SMM predicts SHFE aluminum prices will fluctuate at low levels.
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