Aluminium Creeps Back From 15-Mth Low

Base metal markets generally edged away from their lows during desultory Thursday LME ring trading, although the complex retained an off-colour pallor, traders said.

However, rallies were extremely modest, and in the short-term, the downside remains the favoured destination for most, they added.

Aluminium notched up a fresh 15-month low of $1,448 this morning but seemed to find a modicum of support around $1,550. By the end of the kerb, prices were back at $1,454 as against Wednesday's kerb close of $1,455.50.

The slight recovery took place against a background of consistent borrowing of the tight April date, which was around $6 backwardation, basis April/May.

 

But on the negative side of the fence, the tightness may be sucking in metal with stocks up 325 tonne yesterday. Daily inventory increases could start to occur more often.

Also, there are gloomy implications from trade reports that the US FDA had sanctioned the use of re-cycled PET - a competitor in the beverage packaging sector.

Copper prices were fairly stable, comfortably above what technicians see as a double bottom around $1,648.

But with stocks continuing to dribble higher, there is little justification for the market to rally. Last business was at $1,668, up just $2.

Zinc was pushed to near recent 16-month lows of $1,036 at one stage but the market managed to edge back up above $1,040. Final morning business was at an unchanged $1,043.

Lead was quiet, and languished around overnight levels. Last trade was $0.50 lower at $522.

Tin consolidated Wednesday's technical bounce but did not look like clearing $5,300. It concluded the kerb at an unchanged $5,290.