Base metal report recommends sell for aluminium

Nirmal Bang has come out with its fundamental outlook on base metals. The research firm do not expect any major rise in the prices of metals on account of weak physical demand and higher supplies. Aluminium in particular can be sold on rallies, says Nirmal Bang.

Industrial metals prices rose, helped by a weak dollar and ahead of trade and industrial output data from China this week that should shed light on the outlook for demand from the top metals consumer.

South Korea is seeking a total of 6,000 tonnes of copper with purity more than 99.99 percent via tenders, the state-run Public Procurement Service said on its website

China's oversupply of aluminium is likely to escalate in the second half of 2013 as more new capacity is set to come onstream, further reducing the need for imports by the world's top consumer and producer of aluminium.

Aluminium premiums have slipped in Europe this week due in part to proposals to address bottlenecks associated with warehouse ownership, but they remain near record levels as the market assesses the future of the metals storage business.

Russian aluminium producer Rusal may cut more production this year than it previously planned after being hit by a sharp fall of the metal's price, its CEO was quoted saying in an interview.

The Kenyan government's proposed higher mineral royalties and sudden cancellation of licences flouted regulations, will harm the mining sector's competitiveness and should be reconsidered, the Kenya Chamber of Mines said on Tuesday.