08 OCTOBER 2012Indiainfoline.com
Aluminium Declines even though Inventories Show Sharp Correction
Edited by : AL CIRCLE
1 min read
A sharp correction in LME inventories was not enough to save Aluminium from declines. The total Aluminium inventories were down by 10000 tonnes on Wednesday alone. The total inventories now stand at 5049100 tonnes.
Selling pressure was noted on account of Spain crisis and some weak economic reports from Australia. The Australian Housing Industry Association (HIA) showed that the new home sales declined to a 15 year low. Reserve Bank of Australia on Tuesday slashed interest rates.
In a report, Eurostat said retail sales rose by a seasonally adjusted 0.1% in August, compared to expectations for a 0.1% decline. Dollar was mostly on a sideways tone on Wednesday at 1.292 against the Euro, down 0.05%.
LME three month forward Aluminium prices were down by $ 32 per tonne, at $ 2100.7 per tonne. The metal is used extensively in construction and automobiles. The construction sector is under pressure these days due to high interest rates in domestic and Chinese markets.
Meanwhile, Europe continues to struggle with its debt troubles. Amid all this Australian housing data is a big setback for the metal. MCX Aluminium for October expiry was down by 1.6% at Rs. 109.4 per kg.
Selling pressure was noted on account of Spain crisis and some weak economic reports from Australia. The Australian Housing Industry Association (HIA) showed that the new home sales declined to a 15 year low. Reserve Bank of Australia on Tuesday slashed interest rates.
In a report, Eurostat said retail sales rose by a seasonally adjusted 0.1% in August, compared to expectations for a 0.1% decline. Dollar was mostly on a sideways tone on Wednesday at 1.292 against the Euro, down 0.05%.
LME three month forward Aluminium prices were down by $ 32 per tonne, at $ 2100.7 per tonne. The metal is used extensively in construction and automobiles. The construction sector is under pressure these days due to high interest rates in domestic and Chinese markets.
Meanwhile, Europe continues to struggle with its debt troubles. Amid all this Australian housing data is a big setback for the metal. MCX Aluminium for October expiry was down by 1.6% at Rs. 109.4 per kg.
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