Base metals prices on the London Metal Exchange were collectively lower at the close of trading on Wednesday October 24, pressured by continued strength in the US dollar index while the three-month aluminium price broke below $2,000 per tonne for the first time since April.
Reaching an intraday low of $1,996 per tonne, the aluminium market continues to be affected by uncertainty over United States sanctions against UC Rusal, while trade relations between the US and Russia remain tense after the US backed out of the Intermediate-Range Nuclear Forces Treaty (INF Treaty) earlier this week. Yet while price volatility has been a common theme for aluminium's price action, the light metal has broadly consolidated around $2,100 per tonne since it reached a six-year high of $2,718 per tonne on April 19.In addition, a dominant warrant holding position has emerged in LME aluminium stocks, holding 40-49% of inventories. Elsewhere, nickel prices continue to edge closer to $12,000 per tonne amid broad strength in the US dollar index, which is trading at a two-month...