| The end of backwardations on the London Metal Exchange aluminium contract has failed to entice buyers into the European spot market, with most consumers well-covered for the second quarter after buying strongly at the end of last year.
Backwardations have loomed over the market for the past several weeks, resulting in a very quiet spot market as buyers were unwilling to take positions ahead of that loss of value. The cash-to-three-months aluminium spread is now in a contango of almost $20 per tonne. It was at a backwardation of $18 per tonne at the beginning of last week, from above $30 per tonne the week before that...............................................Full Article: Source
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