Front end spreads tightening for LME Aluminum.
Front-end aluminum spreads are continuing to tighten on the London Metal Exchange, which is bucking the trend seen in other base metals. The most recent close for front-end aluminum spreads was a contango of just over $26 a metric ton, some $16 tighter than in mid-May. The British bank continued that, “While there has been little in the way of clear-cut fundamental tightening to justify this move in spreads, given that LME data showed there were three significant-sized shorts in the July contract versus a 30-39% dominant cash warrant holder, a short-term constraint on delivering material against those positions may have been the force behind this temporary tightening in spreads.”