MI Comment: LME says 'Hullo' to more aluminium

Among the LME complex aluminium was the greatest beneficiary of a falling dollar on Friday, after US non-farm payroll figures for August were much worse than anyone had feared. Earlier in the day, German industrial production had also disappointed, giving most markets a negative tinge well before the US data emerged. Before we signed off the light metal had sagged from 2480 to 2448, though as copper rattled off $200+ in the pm sessions, aluminium traded no lower than 2434, with trade buying sustaining values well above the 2400 danger area. Only gold inspired some confidence as the day drew to a close, trading above $700 as the dollar slid deeper into oblivion, with the base complex bouncing somewhat ahead of the weekend. Prices ended c. 2455 before dealers went home. Nearby rates and forwards were largely unchanged, with only 2010 and 2011 $1.00/mth easier here and there. The LME's WC warrant banding report was void of dominant holdings. Activity was rather slow on Monday morning, with prices easing from opening levels of 2455 after LME stocks piled on a net 11,700t, with Hull in the UK registering a fresh 12,900t. At time of writing values had bottomed again at 2434, with turnover via Select at a modest 1,500 lots currently. Technically Cliff Green Consultancy continued to look for opportunities to 'probe the short side', anticipating an eventual breach of key support c. 2400, they wrote in a daily report. Last at 2436.