Relative strength, but for how long?

摘要

Most of the LME metals headed lower last week with copper, zinc and lead all movingdown beneath their August troughs to set fresh multi-year lows, but aluminiummanaged to hold up relatively well. That said, in a way, copper, zinc and lead, were onlyfollowing aluminium’s lead as the light metal had already broken below the Augustlows of $1,506/tonne in mid-October. Otherwise, aluminium’s relative strength lastweek may have been because of two factors, we feel. Firstly, the Alcoa cuts are still freshin traders’ minds and, secondly, the mass warrant cancellations of late has added adegree of uncertainty to the market as it is not quite clear what is behind the move. Butpremiums have risen as a result, with EU duty unpaid up 60% in a month.