Osaka Mercantile Aluminium Futures Monthly Report

On September 2, distant July contract opened at 164.9 yen, mostly unchanged from the previous month's level as players were reluctant to build fresh positions in the absence of new factors. Later, the prices went higher on short-covering in line with the price-gain in LME. On September 8, distant month rose over the 170 yen level on bargain hunting due to the increased shipment of the secondary aluminium from Japan and following the firmer tone in overseas markets. On September 13, distant month fell to 167.0 yen on bears' selling and long-liquidation due to the yen's surge. Later, the yen advanced further against the dollar. The prices, however, resisted to decline on short-covering as players grew cautious of the excessive selling amid the good supply and demand situation in Japan and the upward trend in the prices in overseas markets. On September 20, distant month advanced to 172.4 yen on fresh buying by public investors who expected that the prices would rise in future as LME three-month aluminium in N.Y. kerb trading had surged to the $1,550 level. It was reported that the export of cars and of the parts for electric appliances decreased due to the stronger yen. With this factor, on September 22, distant month declined to 167.4 yen on bears' selling and on distressed selling by longs. Later, amid LME aluminium falling on technical selling, the prices went lower on long-liquidation as the prices at OME had remained higher than those in overseas markets. On September 22, nearby months fell below the 170 yen level. On September 27, spot month expired lower at 162.1 yen, down 4.8 yen from the previous day on selling by physical-holders. Deliveries were 35 lots. Toward of the end of the month, the prices fluctuated within a narrow range as players took a wait-and-see attitude amid the uncertainty about the direction of the yen. On September 30, distant month closed slightly easier at 164.0 yen.