Osaka Mercantile Exchange Aluminium Futures

This week, OME aluminium futures resisted to decline on short-covering despite the stronger Yen. Distant month : opening 167.1 yen, a high 172.8 yen (Aug. 6), a low 167.1 yen (Aug. 2), closing 172.0 yen At the beginning of the week, despite the yen's strength and the easier tone in LME aluminium, the market steadied on short-covering as players became cautious after the slump of last week. Later, the prices advanced further on buying interest as LME three-months aluminium rallied after falling below the $1,400 level. On August 5, all contract months rebounded to the 170 yen level. Meanwhile, nearby September contract attracted long-liquidation for correction as it remained higher than the other contracts. Later, the yen's gain was lulled temporarily as Minister of Finance Mr. K. Miyazawa said that Japan and U.S. might jointly intervene in the currency market. Players, however, supposed that the gains in the aluminium prices would be small as the yen remained in the upward direction. Both sellers and buyers are inactive to build fresh positions in the absence of encouraging factors, and the price movement will continue to be contingent upon the moves in the currency market. "The aluminium demand will increase as the automobile makers plan to change their models in September, and this strong sentiment will continue," some traders said. This week's total volume of trading was 61,068 lots.