It was more of the same throughout the metals markets and beyond on Wednesday, with a slowing in Chinese IP growth adding to the pervading gloom. The US National Association of Home Builders/Wells Fargo contributed some more negativity after (London) closing time in the shape of a falling index of builder confidence, to its lowest level since 1991.
For aluminium, Cliff Green Consultancy had suggested Tuesday that a technical break below 2540 signalled falls towards 2400 in days/weeks ahead, though the slide in Wednesday’s morning sessions to 2520 didn’t trigger an apocalyptic collapse. With prices at their lowest this year both in dollar and euro terms, consumer interest remained healthy and instead values recovered to 2552 in the afternoon.
Nearby spreads were unchanged, forward backwardations were up to $2.00/mth easier in 2009 and less elsewhere. The
LME’s warrant banding reports remained empty.
In the early hours of Thursday
LME Select registered an opening trade at 2550 and after drifting marginally lower prices fell quickly around stocks time, with copper’s 3,300t net rise setting off the next bout of selling. Confidence remained absent from markets generally and at time of writing aluminium had fallen to lows of 2508 with fund managers running for the exit. CGC now expected interim support c. 2490/2500 with any bounce now likely to be restricted to ‘corrective’ action only. Volumes were again good, with 3,500 electronic lots having changed hands. Now at 2505.
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