SHANGHAI, Aug. 29 (SMM) – Though US Fed president did not mention QE3 during the annual central bank meeting on August 26th, and implied that economic stimulation was not necessary at the time. However, he did say to add two days for the Fed interest rate meeting in September to discuss the need of quantitative easing policies. As a result, stock and commodity prices rebounded following earlier dropping, while the US dollar index fell 0.64% to 73.717.
LME aluminum prices closed 0.27% higher at USD 2,380/mt on August 26th. However, due to cautious market sentiment, daily transaction volumes fell by 3,180 lots to 7,878 lots and total positions were reduced by 4,832 lots to 736,169 lots.
LME is closed today due to British summer vocation for banks. Most active SHFE 1111 aluminum contract prices are expected to open above the 60-day moving average and move between RMB 17,300-17,450/mt. Spot premiums are expected to be positive RMB 150-200/mt over SHFE current-month aluminum prices. Goods holders will actively sell their goods, but transactions will be limited due to weak consumption during the month end.