Copper, Aluminium Skirt Lme Swings

A sharp drop in LME aluminium stocks and a spike in copper inventories yesterday had minimal effect on the sluggish base metal markets, traders said.

"It's painfully slow this morning. They're all stuck in a range," a trader said.

The May options declaration later in the day may be partly responsible for holding prices in a tight band, traders said. However, there was no significant open interest at any relevant strike prices and the declaration was expected to proceed uneventfully, they said. As copper stocks spiked up 3,050 tonnes, prices drifted lower to $2,350 a tonne, which was $10 off Tuesday's kerb close and unchanged from the late finish. But three months prices subsequently ticked up to a slightly firmer $2,363, in the centre of the recent $2,320-2,390 range.

 

The cash to threes backwardation was last at $67-72, little changed from Tuesday's level, but in sharply from last week's high of around $210.

Like copper, aluminium took little heed of the latest stock movements. .A decline of 6,700 tonnes resulted only in pricesmoving to $1,635-37/ tonne.