MARKET TALK: LME Aluminum Capped As Fundamentals Deteriorate

LME aluminum looks unlikely to sustain an upward path amid deteriorating fundamentals, says HARBOR Intelligence. Notes the return of the cash to 3-months spread into a contango from a backwardation and a reduction in the number of warrants held by a dominant long hedge fund. Also, rising stocks and news of a 300,000-metric ton expansion at China's Shandong Chiping smelter adds to the pressure, HARBOR Intelligence adds. LME aluminum is seen holding a $2,650-$2,875/ton range through March and is last at $2,797/ton, unchanged overnight.