Aluminum Withdrawal Orders on LME Surge in Longest Run in a Year
- Prices rise as canceled warrants climb for third day on LME
- Metals mixed after on private China PMI indicates contraction
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Orders to remove aluminum from warehouses tracked by the biggest metals exchange rose for a third day, the longest stretch in more than a year, prompting traders to close out bearish bets on prices that are near a six-year low.
Canceled warrants, as the bookings are known, surged 21 percent in the past three days to 1.1 million metric tons, the highest in five weeks, London Metal Exchange data show. While the market is in surplus, the bookings are probably a sign that supplies are tightening and have spurred traders to cover positions on further price declines, according to ICBC Standard Bank Plc.