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LME aluminium closes up $19 to $2,054 a metric ton
Edited by : AL CIRCLE
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LME aluminium shook off a disappointing Philadelphia Fed manufacturing index to close higher and outperform the other base metals and energy complex, said the global leader in aluminium industry analysis and outlook, Harbor Intelligence.
Analyst with Harbor Intelligence stated that, “Physical demand for primary aluminium continued to improve in China and also in North America. Aluminium prices in China have entered backwardation mode (spot price is higher than immediate futures contract), which is consistent with declining domestic inventories and increasing metal tightness.”
“Chinese net imports of primary aluminum in the first quarter were bigger than in all 2011. The arbitrage to import metal from abroad has widened to $180 per mton after VAT considerations. Demand for automotive alloys continues to weaken in Europe but has strengthened in North America. Funds appear to be adding net long aluminum positions.” Canceled warrants rose sharply again for LME inventories in Detroit, Harbor concluded.
LME aluminium closed up $19 to $2,054 a metric ton, with the 0.9% gain the best performance in a mixed base-metals complex.
Analyst with Harbor Intelligence stated that, “Physical demand for primary aluminium continued to improve in China and also in North America. Aluminium prices in China have entered backwardation mode (spot price is higher than immediate futures contract), which is consistent with declining domestic inventories and increasing metal tightness.”
“Chinese net imports of primary aluminum in the first quarter were bigger than in all 2011. The arbitrage to import metal from abroad has widened to $180 per mton after VAT considerations. Demand for automotive alloys continues to weaken in Europe but has strengthened in North America. Funds appear to be adding net long aluminum positions.” Canceled warrants rose sharply again for LME inventories in Detroit, Harbor concluded.
LME aluminium closed up $19 to $2,054 a metric ton, with the 0.9% gain the best performance in a mixed base-metals complex.
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