off-the-wire

LME monitoring aluminum market after spike in spread

Kitco Media
By Reuters
Published:
Updated:
Reuters
LME monitoring aluminum market after spike in spread teaser image

The London Metal Exchange (LME) said on Wednesday it is monitoring tightness in the aluminum market, which has seen a key spread shoot to a sizeable premium and one party amass a large long or bullish position in the October contract.

“The LME is closely monitoring the tightness in the aluminum market and has the necessary controls in place to ensure continued market orderliness,” the LME said in response to a request for comment.

The premium of LME October aluminum over November hit $18 a tonne on Wednesday from a premium of $5.85 about three weeks ago and a discount of $17.50 in July.

Read More: Aluminum squeeze rolls on with key LME spread spiking again

(Reporting by Eric Onstad; Editing by Kirsten Donovan)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.