Hedge funds and other speculators increased their bullish bets on aluminum with prices climbing to a 17-month high today amid forecasts for a shortage, Bloomberg News reported.
The net-long position in aluminum rose to 146,418 futures and options by Aug. 8 from 141,277 contracts a week earlier, the London Metal Exchange said in its second weekly Commitment of Traders report. Zinc has the highest share of money manager bets on higher prices at 28 percent of open interest compared with 25 percent for aluminum and 22 percent for copper.
On Monday, August 11, the Indian aluminum cash price fell by 0.4 percent, landing at INR 124.45 ($2.04) per kilogram and making it the day’s biggest mover. At $2,017, the cash price of primary aluminum finished the market day on the LME up 0.1 percent per metric ton. On the LME, the 3-month price of aluminum saw little change in its price yesterday at $2,023 per metric ton.
Chinese aluminum prices were flat for the day. The price of Chinese aluminum scrap continues hovering around CNY 12,250 ($1,989) per metric ton for the fifth day in a row. The price of Chinese aluminum billet saw little movement at CNY 13,590 ($2,206) per metric ton. The price of Chinese aluminum bar held steady at CNY 14,200 ($2,306) per metric ton. The Chinese aluminum cash price saw little movement yesterday at CNY 13,960 ($2,267) per metric ton.