SHANGHAI, May 12 (SMM) -- China’s consumer price index (CPI) in April rose by 5.3% on a yearly basis, a signal of severe inflation, and triggering investor concerns over China’s economic growth. The European debt crisis escalated due to Greece debt crisis, and the euro weakened in response, with upward momentum expected to be limited in the short term. The rising demand for risk-averse boosted the US dollar index to above 75. The Energy Information Administration (EIA) announced that the US crude oil and gasoline inventories increased last week, and it was the first rise in gasoline inventories within 12 weeks. As a result, gasoline prices plunged in New York, dragging down crude oil prices to below USD 100/bbl.
LME aluminum prices opened higher but moved lower. Stronger US dollar and lower crude oil prices depressed market confidence in European trading hours, and LME aluminum prices accelerated declines following other base metals prices, with prices finally closing at USD 2,591.3/mt, down USD 61.8/mt or 2.33%. Total positions fell by 1,182 lots to 765,555 lots.
Today, LME aluminum prices are expected to move between USD 2,570-2,620/mt. SHFE 1107 aluminum contract prices are expected to move between RMB 16,600-16,750/mt after opening lower, while spot aluminum is expected to be traded at zero discounts or slight premiums over SHFE current-month aluminum contract prices, and market sentiment will remain sluggish.
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