Osaka Mercantile Aluminium Futures Weekly Report

This week, OME aluminium futures trended downward on active long-liquidation due to the yen's further gain. The open interest decreased sharply, and fell below the 76,000 lot level for the first time in three months. Distant month : opening 165.1 yen, a high 167.6 yen (Aug. 27), a low 162.4 yen (Aug. 23), closing 166.3 yen At the beginning of the week, OME aluminium futures went down sharply on long-liquidation and bears' selling due to the yen's strength and to the fall in the prices in LME aluminium. All contract months except September contract fell below the 160 yen level. Later, amid a lull in the yen's surge, the prices steadied on short-covering and fresh buying as LME aluminium rebounded following the firmer tone in the copper market. Players were shaken by the yen's sharp gain, and bulls who had built their positions at higher level liquidated them actively. The open interest decreased to 75,000 lot level as of August 26 from 84,500 lots as of August 5. Market players supposed that the strong sentiment in LME aluminium would continue due to active buying interest in aluminium consuming countries amid the weaker dollar against their currencies. With this factor, the prices at OME are expected to advance, some traders said. This week's total volume of trading was 45,649 lots.