Aluminium prices recorded a historic milestone in the futures market with a consistent upward momentum, reflecting a strengthened buying interest on the back of robust spot demand and tightened supply expectations.
On the Multi Commodity Exchange ( MCX), aluminium futures for December surged by INR 8.80 ( USD 0.098), thus making the close at 3.07 per cent high, equalling to INR 294.90 ( USD 3.27) per kilogram.
The bullish sentiment was equally evident in the January series, with the aluminium contract price climbing by INR 9.05 ( USD 0.10), reflecting an increase of 3.14 per cent, thus touching a fresh lifetime peak of INR 297.20 ( USD 3.30) per kilogram during the trading session.
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Market participants, however, believed that the sudden rise is nurtured by fresh speculative positions, strong physical market conditions and consistent demand from end-users.
According to analysts, the domestic price surge also mirrors positive signals from international markets. Aluminium prices are quite steady in the overseas market, though potential supply limitations are becoming a persistent concern. However, the demand outlook across key consuming sectors looks positive.
Concerns over restricted global supplies and steady usage levels have intensified the sentiment, thus pushing aluminium futures to record highs on the MCX and keeping prices well supported. However, market players are now closely tracking the overseas market trends as well as domestic spot demand for cues on the next move.
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