Osaka Mercantile Exchange Weekly Aluminium Report

Despite the price-gains in LME, OME aluminium futures failed to advance with players staying on the sidelines due to concerns about the higher levels. Distant month : opening 175.0 yen, a high 176.9 yen (Jul. 2), a low 173.1 yen (Jun. 28), closing 174.9 yen On June 28, LME three-month aluminium surged to the $1,400 level as the copper market was boosted by the announcement that Australia's Broken Hill Proprietary Company (BHP) ould close loss-making facilities in U.S. At OME, the prices were expected to advance sharply. On June 29, however, the price gains were limited on selling for profit taking that set off sporadic buying by public investors. The increase by about 10 yen since June 8 seemed to be the reason why the market players grew cautious of higher levels. Market participants anticipated that LME aluminium would advance following the price-gains in the copper market, and distant month at OME were expected to climb to the 180 yen level in the near future amid the shortage of stocks in Japan. Meanwhile, some traders of FCMs said that most bulls seemed to be waiting for a good chance to place bargain hunting, so that trading in the market remained lackluster. This week's total volume of trading was 61,781 lots.