MARKET TALK: LME Aluminum Tad Lower; Open Interest Key

LME 3-month aluminum last at $2,730/ton, down $7 on London PM kerb in quiet trade. Trader at major Japan house says main influence on nearby LME aluminum contracts is large open interest, which is increasing cash to 3-month spread in possible short squeeze; actual physical demand in Japan weak now until March due to seasonal slowdown when consumers drawdown inventories ahead of Japan fiscal year-end and as LME stocks still very healthy.