MI Comment: Aluminium struggles as others slip

Tuesday was a non-event for aluminium and some of the others in the LME complex, with tin being the shining star and nickel the black sheep. By the time we signed off during yesterday’s premarket prices had slid from 2678 to 2655, which was more or less the range for the rest of the day on volumes that were a fraction of Monday’s. Nearby spreads were unchanged, forwards were $0.50/mth better bid typically and the WC warrant banding listings remained empty. Trading resumed c. 2670 on Wednesday morning and prices were marked lower initially on a firmer dollar, though the slide accelerated as LME stocks showed a jump in copper of more than 8,500t, in Asia. Aluminium stocks were down and equities were stronger, though with nickel stocks also recording a jump of 1,150t the increases sparked a sell-off across the board. At time of writing the light metal had tumbled back to 2635, approaching Monday’s low of 2630, on light volume of only 1,500 lots via Select so far. In last night’s daily update, Cliff Green Consultancy had continued to look for tests of support at 2610/20 initially, then 2540/50, with short term trends pointing lower. Last at 2644.