Osaka Merkantile Exchange Aluminium Futures Weekly Report

Distant month : opening 180.1 yen, a high 183.8 yen (Feb.8), a low 178.4 yen (Feb. 10), closing 178.4 yen On February 7, OME Aluminium Futures opened marginally easier carrying over the bearish sentiment that prevailed from the end of the last week with distant January contract at 180.1 yen, down 2.0 yen from the last Friday's close. On February 9, distant two contract months fell below the 180 yen level on long liquidation as the aluminium stocks at designated LME warehouses continued to increase even after reaching the 800,000 tonnes level for the first time in 10 months. Distant January contract sank to 178.8 yen. At the end of the week, OME prices were corrected on lack of fresh incentives with distant January contract at 178.4 yen. Although distant contract month briefly hit the high at 186.3 yen on February 2, there seems to be a resistance at 185.0 yen level. The distant contract month have remained mainly in the range between 176.0 yen and 185.0 yen from the end of January to this day. Also, traders attributed the fall in the distant contract month below the 180.0 yen level at the end of this week to a technical correction of the gains caused by the weaker yen. "The downward move in OME Aluminium futures will be limited",a trader said. This week's total volume of trading was 23,830 lots. The open interest was 58,279 lots as of February 10.