As the Fed hinted that it will continue to raise interest rates, the US dollar will be stronger, which will hit the basic metals market. LME aluminum prices fell due to this effect and ended at $2543, down $38. The domestic aluminum price also fell with London Aluminum today. The main a0608 contract opened at 20,700 yuan/ton, hitting 20,790 yuan/ton higher, reaching 20,480 yuan/ton lower, and ending at 120,700 yuan/ton off lately. Volume 59142 hands, positions 60860 hands.
Due to the large spread between Guangdong and Shanghai, some of Shanghai's spot inflows into Guangdong today have led to a decline in Guangdong's premium, and it is expected that there will be more inflows of aluminum ingots in the afternoon to suppress aluminum prices in Guangdong. Within five years from October 2006, Bonneville Power Authority will annually provide a total of US$59 million in electricity price subsidies for Alcoa, Columbia Fors Aluminum and Gold Northwest Aluminum, provided that the companies do not Then enjoy the previous preferential price of electricity and must purchase electricity at market price. The market believes that these subsidies will make it possible for the United States to restart over 800,000 tons of idle primary aluminum production capacity. These increased supplies will put aluminum prices under pressure. At present, the decline of Lon Aluminium is still continuing, with 2480 US dollars as the recent support. Shanghai Aluminum will also follow Lun Aluminum's weakness, suggesting that the shorts continue to hold.