MARKET TALK: LME Aluminum Steady, Backwardation Supports

LME aluminum slightly higher in Asia in quiet trade, likely to remain firm short-term as metal supported by backwardation on cash to three month spread, has consumer support above $2,600/ton, says physical trader at Japanese firm. LME 3-month aluminum last at $2,710/ton, +$3 on London PM close; cash to 3-month spread at $48.75. Trader notes backwardation driven by large long position held by hedge fund, as player trying to squeeze holder of large short position.