Aluminium futures continued to trade against positive fundamentals in the day’s trading, falling below the support level of $1,900 per tonne.
Since the start of the year, more than 300,000 tonnes of fresh cancelations have failed to raise the metal’s three-month price past $2,000 per tonne. It has not traded above that price since October 2018.
Open interest in aluminium has ticked higher, however, and is now at its highest level since June 2018 at just under 92,000 positions. In addition, a dominant warrant position has emerged at around 30-39% of LME stocks.
Meanwhile, copper futures continued to take a different path, with volumes topping the complex at just over 12,000 lots traded by the close. The metal’s three-month price continued to push higher while LME stocks were at a decade-low level, and was making a steady approach to $6,300 per tonne for the first time since October 2018.
“It was clear that a...