LIVE FUTURES REPORT 03/10: LME ali price rally continues, up 4.5% on Alunorte closure; lead falls 2%

The prices of base metals on the London Metal Exchange were mixed at the close of trading on Wednesday October 3, with aluminium’s three-month price up more than 4% amid a full closure of Norsk Hydro’s alumina operations in Brazil, while lead struggled against trade woes.

Reaching an intraday high of $2,220.50 per tonne over the afternoon, the three-month aluminium price continues to trade at its highest level since June, with 27,580 lots changing hands by the close - the most since April 23.  Facilitating the price rally, news of a full closure of operations at Hydro’s Alunorte alumina operation in Brazil has fuelled fresh buying, while falling stocks and a raft of fresh cancellations exceeding 170,000 tonnes since the start of September have added to a more bullish market sentiment.  In addition, dominant warrant holdings positions have appeared in copper and tin, with one position holding 80-89% of stock respectively. “Since the positive close on September 28 which produced a bullish engulfing daily candle, the LME aluminium price has enjoyed an uninterrupted rally above $2,100 per tonne. Its improved technical configuration has attracted fresh buying to emerge,” Fastmarkets analyst Andy Farida said in his Aluminium Today report.  “The solid...

Published

Hassan Butt

October 03, 2018

17:55 GMT

London