SHANGHAI, Dec. 3 (CBI China) -- Sales data of U.S. auto industry remains in the doldrums, the bailout plan for automobile industry still wait for US Government's approval. Downturn in automotive industry further indicated how serious the global financial crisis is, and showed the U.S. economy has entered recession. Overnight metal prices continued to drop, overnight three-month contract of LME Aluminum closed at USD 1,695/mt, below USD 1,700/mt and down USD 40/mt. Prices of spot molten iron fell to USD 46.5/mt, and inventory has keeping increasing, reaching 1.8265 million mt.
SHFE aluminum prices declined in acceleration in recent period, partly due to production cost has decreased, on the other hand, support from former favorable news is limited, market returns to focusing on the fundamentals of supply and demand. It can be said current market sentiment has entered an unprecedented sluggish period, combined with lowering expectation of aluminum prices bottom line. SHFE aluminum will not improve performance today; main contracts will search for support at next integer level after breaking RMB 12,000/mt.
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