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LME prices close the week above key support despite inventory buildups; Cash–3M backwardation returns (bearish premiums)

LME prices close the week above key support despite inventory buildups; Cash–3M backwardation returns (bearish premiums)

Executive Summary

1. LME prices were up on Friday as key support at $1,740 per mton prevailed. Prices still declined 3% in the week amid increasing inventory buildups and bearish sentiment.

2. CME MW duty-paid financials for 2020 transacted at around ... cent/lb.

3. Large LME aluminum inventory buildups continue to take place in Asia (as expected); global LME inventories now stand at a six-month high while live warrants reach a ten-month high.

4. LME Cash–3M backwardation resumes as tightness after November continues to intensify (bearish premiums).

5. HARBOR’s Implicit Green Aluminum Upcharge assessed today at zero, unchanged from yesterday’s assessment.

6. China’s aluminum prices practically stall at two-week lows.

More details in full report.