SHANGHAI, Aug. 3 (SMM) – The US dollar index rose and hit 74.734 on August 2nd after the US Congress reached an agreement to lift the country’s debt ceiling before the deadline. However, upward space of the US dollar index is limited by market worries towards recovery of the US economy. After fluctuating at the 20-day moving average, the US dollar index finally closed at 74.572, up 0.38%.
LME aluminum prices fell for 3 successive days and hit a lowest USD 2,560/mt overnight, due to strengthening US dollar and weak global economy. During European trading hours, LME aluminum prices rebounded and closed above the 30-day moving average at USD 2,574.5/mt, down USD 12.5/mt or 0.48%. Total positions rose by 5,633 lots to 723,873 lots.
SMM expects LME aluminum prices to fluctuate between USD 2,550-2,590/mt on August 3rd. Most active SHFE 1110 aluminum contract prices are expected to fluctuate between RMB 18,250-18,450/mt. Spot premiums are expected to be positive RMB 30-80/mt over SHFE current-month aluminum prices due to low selling interest among goods holders. As aluminum consumers purchase on an as-needed basis, market transactions will be moderate.
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