Aluminium...
MCX Aluminium is witnessing limited momentum in trades in early
morning hours. The prices have not been able to find a way out of the
consolidation that has rolled it in range of Rs 108 and 104 per kg since
late February. Metal is always a bit less volatile compared to Copper
but the rapid downfall in prices from Rs 116 per kg levels in mid
February has sapped further energy to trade down. The market situation
is such that even the buyers are missing from the contract.
LME
three month Copper forwards was trading at $ 1965 per tonne, down by $
23 per tonne from last night. On MCX, Aluminium April was trading at Rs
105.65 per kg on Thursday. The prices are static in last few trading
sessions.
Going forward, there is news in the markets that China
is going to stock further 300000 tonnes Aluminium in order to give
support to the industry. What will be the implications of such move on
Aluminium?
1. Brief rally can occur on the day of announcement and few more sessions.
2. Prices will come back down as bears will take opportunity to sell on rallies.
3. Inventories already at high levels.
4. Premiums charged on forwards are coming down due to curb in financing deals.
5. Western China already producing high amount of Aluminium.
6. Total Aluminium production of China was up by 11% to 1.73 million tonnes in February 2013.
Source by Commodity Insights
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