MARKET TALK: LME Aluminum Stock Rise Below Expectation

LME aluminum stocks continue to rise, enticed by backwardation resulting in around 50,000 tons coming into LME warehouses since the start of the year, but many participants expect larger deliveries given extent of backwardation at $118/ton for cash-to-3-month spread; could be a sign of a tighter-than-expected market, says Standard Bank. LME data show a dominant short position holding more than 40% of open positions for Feb, March and April prompt dates. LME 3-month aluminum trades at $2,702/ton, down $9 on Monday PM kerb.