The LME complex had a sluggish start to the week with dealers sitting on their hands in the morning, awaiting 'third Wednesday' pricing action in the rings. Early interest was muted by an interest rate hike in China, which saw aluminium (and copper) marked down at the opening to 2792. It turned out to be the low of the day, as the light metal later followed copper and precious metals higher on the back of improved sentiment in the equities markets. Prices hit a high of 2830, though from there interest waned and the market retreated to 2810 in low turnover.
Amid conjecture about the 'dominant long' possibly letting go of its position, nearby shorts found themselves short of offers as they bid Cash (Mar21) to Apr4 out to 20.00b from 5.50b. However, in another shift in distribution of tightness the balance to Apr18 fell to Level, also from 5.50b. Forward rates were $0.50-$1.00/mth steadier in 2009, though unchanged elsewhere. There was a greater shift (at last) in the LME's WC warrant banding report as at cob Friday (the report is two days delayed) this morning. The report still contained two parties with the lower remaining at 30-40%, though the greater was now down to a potential 40-50% holding – the report totals individual holders' Warrants, Tom and Cash positions and reflects them as a percentage of all LME 'open' stocks.
Trading was somewhat tedious on Tuesday morning, with prices hovering c. 2800 (2810-2795) up to time of writing, with turnover no greater than 643 lots. The limelight was being taken by nickel, where some long overdue profit-taking had dragged prices lower. As at last night, Cliff Green Consultancy continued to hold longs established down to 2700, they wrote, looking for the 2900 area. Nearby support was anticipated c. 2760, with stop-sell orders placed nearby. Last at 2802.
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