Aluminium....
Aluminium
forwards in LME are experiencing a rise in contango though on a slower
basis. The contango is the condition when the forward prices are higher
than the cash markets. The rise in contango is due to the fact that the
inventories of Aluminium in hand are still quite higher and as the
global demand picks up this can start to come down. But as of now the
rise of Dollar and the fall in Chinese demand is hitting the spot
markets hard.
Aluminium forwards were at a premium of $ 36 per
tonne at the beginning of this year from where they have increased to $
42 per tonne currently. The prices of LME forwards when last checked
were at $ 2034 per tonne. Spot Aluminium in London was at $ 1993 per
tonne.(http://www.mcxfreetips.com/mcx-commodity-services.htm)
Aluminium was in limelight this year when World Bank said
that the commodity will be a winner in substitution affect compared to
Copper. High prices of Copper and cheaper Aluminium will create mismatch
between the two commodities that will help Aluminium. However, all the
metals have come down since the forecasts due to lower appetite from
China that these days consumes 40% of major metals in the world.
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