LME aluminium nose-dives to a 2-week low; MCX aluminium rises 0.13% on spot demand

<p>Aluminium prices slipped to two-week lows on Monday weighed on by worries about Chinese producers restarting operations and adding to the metal glut being created by remelting of semi-finished products.<br /><br />Benchmark aluminium on the London Metal Exchange was down 1.4 per cent at $1,652 a tonne from an earlier $1,647, its lowest since Sept 28.<br /><br />"Production of primary aluminium is coming back in China. There is a surplus of aluminium semis, which are being remelted," said Carsten Menke, analyst at Julius Baer. &ldquo;As inventories build, there will be pressure on prices, aluminium at these levels still looks quite expensive."<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/al-ingot-2-small.jpg" alt="News" width="480" height="241" /><br /><br />Aluminium prices have rallied this year due to a tighter market. Assumptions that supply from top producer China would ease had been reinforced by falling stocks of aluminium in warehouses monitored by the Shanghai Futures Exchange (SHFE), which are down more than 75 percent since March to near 85,000 tonnes.<br /><br />Industrial metals generally were supported by a lower U.S. currency, which when it falls makes dollar-denominated metals cheaper for non-U.S. firms.<br /><br />India aluminium futures edged up by 0.13% on spot demand<br /><br />In India futures trading, aluminium prices inched up today by 0.13 per cent to INR111.95 per kg as speculators built up fresh positions on uptick in demand from end user industries in the spot market. <br /><br />{googleAdsense}<br /><br />At Mumbai's Multi Commodity Exchange, aluminium for delivery in November traded higher by 15 paise, or 0.13 per cent, to INR111.95 per kg, in a business turnover of 18 lots.<br /><br /><br />Similarly, the metal for delivery in October edged higher by 5 paise, or 0.04 per cent, to INR111.20 per kg in 404 lots. <br /><br />Analysts said fresh positions created by participants following pick-up in demand from consuming industries in the spot market, mainly influenced aluminium prices at futures trade.</p>