BLBG:Aluminum Traders on LME Probably Added to Wagers That Prices Will Decline Q
Aluminum traders probably added to wagers that prices will drop as the number of outstanding contracts expanded while prices declined.
Open interest in London Metal Exchange futures rose by 23,525 lots to 1.38 million lots in the week ended Nov. 2, with one lot equal to 25 tons, according to bourse data. Aluminum for delivery in three months, the benchmark, fell 4 percent.
Rising open interest and declining prices suggest new short positions, according to Macquarie Group Ltd. When open interest and prices advance together, traders are typically adding to bets on higher prices.
Following are changes to market open interest of both LME members and their clients, and compiled by the exchange, for the six biggest industrial metals futures traded on the bourse.
Change in Lots % Price Change
Aluminum 23,525 -4.0
Copper 5,152 2.7
Zinc -4,476 3.9
Lead -3,399 5.2
Nickel -1,150 -2.8
Tin -386 2.9
To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
