After Thursday’s fund-led rout aluminium had a choppy day on Friday, that saw prices fall back again after an overnight bounce only to resurge on short-covering in the pm sessions. Volumes were high initially as trade buyers mopped up heavy selling early in the premarket, though as this selling dried up turnover receded and prices recovered as far as 2800 from a morning low of 2745.
The $1.00-backwardation in Jun20-27 remained, while nearby contangos lengthened marginally. Forward rates were $0.50/mth steadier typically. The sole dominant long in the LME’s WC warrant banding report stayed at 30-40%.
On Tuesday morning trading was slow to get going after a long weekend, though prices had perked up currently from a low of 2790 to a high of 2808 on a falling dollar and steadier copper on strike talk in Chile. Oil prices were also stronger, as was Shanghai’s leading equities index, though judging by current turnover of only 850 lots currently, enthusiasm was clearly lacking among the aluminium crowd. Having fallen below and then recovered the 100-day moving average c. 2780, the market remained within an extended trading range, wrote Cliff Green Consultancy. Medium to longer term trends were still “rather flat”, though shorter term indicators appeared to be turning down, they added, with supports c. 2720 and ‘even’ 2660 likely to come under further examination. Last at 2795.
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