SHANGHAI, Jul. 26th (SMM) – On July 25th, market sentiment turned cautious after US president Obama failed to reach an agreement for debt ceiling issue with Republicans in the Congress. As a result, the US dollar index lost upward momentum and finally closed at 74.115, down 0.17% despite a downgrade of Greek debt rating by Moody’s.
LME aluminum prices fluctuated upward at the tail of Asian trading hours supported by strong aluminum prices in China, and hit USD 2,624/mt, a new high since June 15th. Support for aluminum prices was strong at the moving averages and upward momentum remained. LME aluminum prices finally closed at USD 2,615/mt, up USD 25/mt or 0.97%, making it the only metal that gained overnight. Total positions decreased by 1,170 lots to 681,101 lots.
SMM expects aluminum prices to consolidate at USD 2,600/mt and fluctuate between USD 2,600-2,650/mt. Most active SHFE 1110 aluminum contract prices are expected to open higher and fluctuate between RMB 17,650-17,850/mt during the day. Spot aluminum prices will remain strong, with premiums expected to be positive RMB 70-120/mt over SHFE current-month aluminum prices. As bullish sentiment is strong in the aluminum market, aluminum prices are expected to reach RMB 18,000/mt in the short term.
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