SHANGHAI, Dec. 30 (SMM) -- The People's Bank of China (PBOC) announced on Wednesday that it raised the interest rate it charges banks on some funding programs, lifting the one-year refinancing rate by 0.52% to 3.85% and the rediscount rate to 2.25% from 1.8% since December 26th. Although China continued to tighten monetary policies, robust demand for the US government bonds helped weaken the US dollar, with the US dollar index dipping steadily last night to below 80 and finally closing at 79.761.
LME market reopened on Wednesday, and the weaker US dollar and bullish other base metal prices helped drive up LME aluminum prices. LME aluminum prices opened higher at USD 2,447/mt, and later fluctuated higher and finally closed at an intraday high of USD 2,455/mt, up USD 25/mt compared with the previous trading day, or up 1%. Positions fell by 2,971 lots, while LME aluminum inventories fell by 2,700 mt to 4,272,575 mt. Today, SHFE aluminum prices opened slightly higher, with prices continuing to struggle around the 5-day moving average, and SMM predicts SHFE 1103 aluminum contract prices will move between RMB 16,650-16,780/mt today.
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