AVN 66.50 Increased By ▲ 1.65 (2.54%)
BOP 8.80 Increased By ▲ 0.10 (1.15%)
CHCC 131.50 Increased By ▲ 7.29 (5.87%)
DCL 9.25 Increased By ▲ 0.35 (3.93%)
DGKC 103.94 Increased By ▲ 3.05 (3.02%)
EFERT 61.60 No Change ▼ 0.00 (0%)
EPCL 44.50 Increased By ▲ 1.50 (3.49%)
FCCL 20.61 Increased By ▲ 0.21 (1.03%)
FFL 14.25 Increased By ▲ 0.43 (3.11%)
HASCOL 14.08 Increased By ▲ 0.51 (3.76%)
HBL 129.89 Increased By ▲ 1.07 (0.83%)
HUBC 79.63 Increased By ▲ 1.13 (1.44%)
HUMNL 6.60 Increased By ▲ 0.10 (1.54%)
JSCL 23.10 Increased By ▲ 0.80 (3.59%)
KAPCO 28.20 Increased By ▲ 0.57 (2.06%)
KEL 3.71 Increased By ▲ 0.10 (2.77%)
LOTCHEM 12.73 Increased By ▲ 0.26 (2.09%)
MLCF 38.19 Increased By ▲ 1.67 (4.57%)
OGDC 103.07 Increased By ▲ 5.53 (5.67%)
PAEL 32.30 Increased By ▲ 1.45 (4.7%)
PIBTL 12.12 Increased By ▲ 0.25 (2.11%)
PIOC 90.29 Increased By ▲ 6.79 (8.13%)
POWER 9.48 Increased By ▲ 0.31 (3.38%)
PPL 93.22 Increased By ▲ 5.30 (6.03%)
PSO 195.07 Increased By ▲ 4.79 (2.52%)
SNGP 43.18 Increased By ▲ 0.44 (1.03%)
STPL 13.42 Increased By ▲ 0.17 (1.28%)
TRG 57.38 Increased By ▲ 4.48 (8.47%)
UNITY 23.38 Decreased By ▼ -0.24 (-1.02%)
WTL 1.02 Increased By ▲ 0.02 (2%)
BR100 4,252 Increased By ▲ 58.16 (1.39%)
BR30 21,403 Increased By ▲ 315.18 (1.49%)
KSE100 41,031 Increased By ▲ 653.5 (1.62%)
KSE30 17,295 Increased By ▲ 278.41 (1.64%)
Markets

Tighter LME market helps lift aluminium to three-week high

  • Benchmark three-month aluminium was up 1.3% at $1,806 a tonne at 1608 GMT after touching $1,808, the highest since Sept. 15.
  • There is better demand coming through, and a bit more optimism," independent analyst Robin Bhar said.
09 Oct 2020

LONDON: Aluminium prices on the London Metal Exchange (LME) on Thursday hit a three-week high, driven by expectations of solid demand and signs of tighter supply.

Benchmark three-month aluminium was up 1.3% at $1,806 a tonne at 1608 GMT after touching $1,808, the highest since Sept. 15.

The metal, used in packaging and transport, has rebounded from a low of $1,455 in April, when the novel coronavirus spread globally, but prices are slightly below January's highs.

"There is better demand coming through, and a bit more optimism," independent analyst Robin Bhar said, adding that although the market was oversupplied, the surplus was being locked up in financing deals, leaving room for further rises.

CLOSED: Chinese markets are closed until Friday for a week-long national holiday, reducing trading activity.

SPREADS: The discount of cash aluminium against the three-month contract on the LME touched $12.80, the lowest since March, from $37 a week ago, pointing to tighter nearby supply.

Aluminium for Friday delivery traded as much as $9 above metal for Monday delivery, the biggest 'tom-next' spread since July.

STOCKS: On-warrant aluminium in LME-registered warehouses at 1.1 million tonnes are down from almost 1.5 million tonnes in June but above typical levels for 2018 and 2019 of around 800,000 tonnes.

OUTPUT: Swedish aluminium producer Granges said it expected third-quarter operating profit and sales volumes to exceed market expectations.

COLUMN: China's aluminium import boom heralds a deeper rift in the market, writes Andy Home.

POSITIONING: Speculators hold roughly equal bets on higher and lower aluminium prices on the LME, brokers Marex Spectron said.

GERMANY: German exports rose for the fourth month running and by more than expected in August.

MARKETS: Equities markets gained.

OTHER METALS: LME copper was up 0.1% at $6,683 a tonne, zinc rose 0.9% to $2,377.50, nickel gained 0.4% to $14,665, tin was up 0.1% at $18,135 and lead was down 0.5% to $1,794.