I'm putting aluminum squarely in the Train Wreck category. Above ground tin is just about completely gone:
Reuters
UPDATE - LME aluminium sets 8-1/2 yr high during kerb trade
Wednesday April 14, 1:21 pm ET
LONDON, April 14 (Reuters) - Three month aluminium futures hit
their highest since October 1995 on the London Metal Exchange (LME) on Wednesday afternoon as
fund buying and upbeat fundamentals triggered buy stops, traders said.
Aluminium (MAL3) peaked at $1,794 a tonne during Wednesday's kerb trade, before settling
at $1,791. It closed on Tuesday at $1,749.
Traders said a mix of buyers led by funds had driven the price up to the previous high of
$1,775, and then hit buy stops taking the market even higher.
"We've seen decent tonnages of aluminium go through today with two or three dealers buying,"
one LME trader said.
"The funds have been buying, as have banks and the trade," a second trader said.
Analysts said that funds were driving the metal towards a technical target of $1,900 a tonne
spurred by indications that demand for the metal was likely to be strong.
"The funds finally got what they wanted with those stops at $1,775," the second trader said.He added said that the forward spreads were widening and the market was getting concernedthat a technical squeeze could be developing from August."The forwards were bid out well today for the second half and there are a lot of call options being bought for the second half too," he said.
Traders also noted that LME warehouse inventories had fallen more or less in a straight linefrom 1.40 million tonnes IN LATE February to 1.18 million on Wednesday.
They thought much of the metal was heading into eastern Europe to avoid a European Union (News - Websites)
import duty levied when 10 new countries, including Hungary and Poland join the bloc in May.Traders said the next targets were $1,800 and $1,850. One trader said $2,000 could be realised.
Tin (MSN3) went untraded, but was indicated higher at $8,750/800 from $8,450 at Tuesday's kerb.
The cash to three months spread increased by $100 to $450 bid.
"The market is just so tight. There are no sellers out there at all, and we don't expectto see any producer selling until May," the second trader said.LME tin inventories were at 6,645 tonnes on Wednesday, their lowest since August 1998.
Analysts and traders expect tin to challenge the 14-1/2 year peak of $9,200 set earlier this month in coming sessions.
Other metals were dragged higher in aluminium's wake.
Copper (MCU3) recovered from early afternoon losses to close at $2,858 from $2,821, while lead (MPB3) rallied $19 to $731.Zinc (MZN3) ticked up $8 to $1,028 and nickel (MNI3) rose $100 to $13,000. |
