Some 138,650 tonnes of aluminium were rewarranted this morning in the LME-listed warehouses in the Malaysian port while 17,725 tonnes were also delivered in.
The move comes after a 109-day queue formed at the Istim warehouse after a string of cancellations late in April.
“There’s a tug-of-war situation at play here, with a lot of post-Rusal cancellations taking place for aluminium in Port Klang. A queue of over 50 days is going to lead to discounted rent, with some participants making the most of the LME’s QBRC rule,” ING analyst Oliver Nugent told Metal Bulletin.
The three-month price has dropped 1.3% over the morning to below $2,300 per tonne while its cash/three-month spread is in a backwardation of $23 per tonne.
The rewarranting helped stir bullish sentiment among some...