MARKET TALK: LME Aluminum Backwardation Good For Roll Returns

Although aluminum prices have been range bound for the past 7 months, the backwardation in the forward curve is providing positive roll returns, notes Deutsche Bank. "This has been encouraging given the rise in inventories on the LME since the end of last year," the bank says. Notes main risk going forward is the rise in alumina production and the Chinese net exports during 08. LME 3-month Aluminum traded last at $2,854/ton, +0.7% on the day.