MARKET TALK: LME Aluminum Edges Up On Short Covering

LME 3-month aluminum last at $2,627/ton, +$17 on London PM kerb, edging higher on consumer short-covering, says Sydney-based analyst. Notes consumer buying mostly out of Japan, as buyers see good opportunity to cover their short positions now that prices have dropped significantly in past week. Adds, sizable backwardation in January may buoy short-term prices, as it suggests shortage in market, but rising production, led by strong Chinese output, likely to weigh on more forward prices.