MARKET TALK: LME Aluminum Holds Gains, Spreads Tighten

LME aluminum holds on to Thursday gains and could push higher after spreads tighten with the cash-to-three month backwardation pushing out to $27/ton from $15 Thursday given concentration of warrants, says a trader. "The dominant position holder has stirred up some shorts and the market could well rise further," he says. Aluminum's fundamentals remain the weakest among LME traded metals. LME data shows a single customer or consortium of customers holds 50%-80% of live warrants. LME 3-month aluminum trades at $2,855/ton, down $8 on the Thursday PM kerb.