The stronger prices of late have attracted forward selling, which saw the LME three-month to 27-month spread bid out to a $1,600/tonne backwardation last Wednesday. Similarly, cash to 27-months flared to $1,380/tonne. However, the market seems to have absorbed the selling, which is a bullish sign, and the backwardated structure of the forward curve has eased. The three-months to 27-month backwardation was last at $1,270/tonne, and cash to 27-months had narrowed to $1,230/tonne.
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