[Ferro-Alloys.com] Nearby aluminium spreads traded in yawning contangos on the London Metal Exchange on Monday August 12, as carry-trade financiers that typically borrow the spreads stayed away from a physical market under scrutiny from the regulators.

 

The cash-to-three-month aluminium spread was in a $48 contango in the official session on Monday, as the three-month price settled higher at $1,880/80.50 per tonne. While outright aluminium prices rose, the large financial institutions and funds that typically borrow the spreads to collect metal for use in carry-trade financing deals remained largely absent from the market, causing nearby spreads to be offered in the largest contangos seen since the financial crisis.