MI Comment: Humdrum aluminium

It was another dreary day for aluminium on Monday, with prices slipping lower as Japan holidayed and copper eased on a surprise rise in LME stocks and a resolution to a number of labour disputes. By the time we signed off yesterday values had come off from 2815 to 2794 at the end of the premarket, after which they lost another $10, only to close unchanged on the day. The nearby C-3m spread lengthened as Sep-3m acquired an additional 4 days' worth of contango, while forward backwardations slipped by $0.50-$1.00/mth to early 2010. The LME's WC warrant banding report was now down to a solo holder of positions equal to 30-40% of all non-cancelled stock. So far on Tuesday morning the market remained rather humdrum with prices stuck in a narrow 2783-2793 band and with Select volumes just into 4 figures for the entire premarket. Resistance remained at 2830/40, according to Cliff Green Consultancy, and unless this could be overcome soon values were increasingly vulnerable to renewed bouts of weakness, the trading strategists wrote in a report. Last at 2787.