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.