Indian aluminium futures gain on rising demand

The prices of aluminium futures in Indian market rose 0.62 per cent today, further up from yesterday’s 0.29 per cent rise, to stand at INR 121.95 per Kg. Speculators were found engaging themselves in enlarging positions and taking positive cues from the aluminium spot market as demand improved.

At Mumbai’s Multi Commodity Exchange, aluminium for July delivery was up by 0.62 per cent at INR 121.95 per Kg in a total business turnover of 1092 lots.

Prices of aluminium contracts for August delivery also edged higher simultaneously by a similar margin to stand at INR 122.60 per Kg in a total business turnover of 120 lots.

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Shedding light on the reasons driving aluminium price rise in Indian futures market, analysts said expanding of business positions by the market participants following spike in demand from the end user industries mainly kept the prices of aluminium rising at futures trade.

In the international market, aluminium demand weakened while inventory kept growing. These two factors combined put a downward pressure on aluminium traded at London Metal Exchange. LME aluminium gave in to the pressure and fell below US$1,900 per tonne to hover at around US$1,870 per tonne.

However, UC Rusal Deputy Chief Executive Oleg Mukhamedshin said that global aluminium price will likely stabilise around US$1,900 per tonne in 2017.