India aluminium scrap prices remain stable; Norsk Hydro forecasts weaken aluminium futures

India major aluminium scrap commodities prices remained stable on Tuesday, February 23, while aluminium futures prices at Multi Commodity Exchange weakened after Norsk Hydro cuts aluminium demand growth forecasts.

The major aluminium scrap commodities stayed stable on Scrap Register Price Index as on Tuesday. India's major scrap commodities like aluminium accessories scrap, aluminium cable scrap, aluminium ingots, aluminium rod company, aluminium rod local, aluminium scrap 6063, aluminium scrap taint/tabor, aluminium sheet cutting, aluminium utensil scrap, aluminium wire scrap showed a flat trend during the day.

The most active February aluminium contract on Multi Commodity Exchange settled lower by 1.8 per cent to INR 107 per kilogram on Tuesday from previous close of INR 108.90 per kilogram. The MXC aluminium prices touched an intra-day high of INR 109.50 per kilogram and an intra-day low of INR 106.60 per kilogram during Tuesday.

Norsk Hydro, one of the world's largest aluminium producers, cut its 2016 forecast for global demand growth to 3-4 per cent from 4-5 per cent, told last week. While a massive overhang of aluminium stocks, mostly due to rising Chinese production, is set to cap a tentative price recovery triggered by large output cuts.

Last year plummeting prices and squeezed margins led to production cuts of around 5.5 million tons with the bulk, about 4 million tons, in China.