LME surge stalls aluminum premiums
Sep 14, 2012 | 04:18 PM
| Suzy Waite
NEW YORK A surge in the London Metal Exchange aluminum price coupled with ongoing annual contract negotiations led to few P1020 aluminum spot deals in the past week.
Three-month aluminum closed Fridays official session at $2,175.50 per tonne, up 6.7 percent from $2,038 at the start of the week and 14.6 percent higher than $1,899 two weeks ago.
Sources said the LME aluminum price jump was due to the Federal Reserves latest round of quantitative easing as opposed to actual demand.
"As the Fed embarks on a third round of quantitative easing, risky assets are rallying hard. Commodities were among the biggest gainers of any asset class following the announcement," Barclays Capital Inc. analysts said in a research report Friday. "Base metals look likely to benefit most from better sentiment in the short term, but without fundamental support, liquidity-driven rallies are likely to fade fast for most commodities." ....
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