Aluminium firms up in futures market
Aluminium prices witnessed an upward movement in the futures market on firm global trends and weak dollar coupled with power disruptions in China after the recent earthquake, analysts said.
By PTI |
NEW DELHI: Aluminium prices on Thursday witnessed an upward movement in the futures market on firm global trends and weak dollar coupled with power disruptions in China after the recent earthquake, analysts said.
In May contract at the Multi Commodity Exchange, the metal was trading at Rs 128.80 per kg at 1400 hours, an increase of 0.82 per cent against the previous close of Rs 127.75 per kg. In June contract, aluminium was trading at Rs 129.50 per kg, up 0.97 per cent from previous close of Rs 128.25 per kg.
"The upward movement of crude oil and gold, weakening of the US dollar against euro coupled with power disruptions in China after the recent earthquake is helping in pushing up the prices of aluminium in the futures market," Karvy Comtrade's Research Analyst Vishal Muniyar pointed out.
Even as the aluminium inventory has gone up by more than 30,000 million tons, technical buying is pushing up the prices of the base metal.
Religare Commodities Ltd Metal and Energy Research In-Charge Somnath Dey said as aluminium production requires high energy intensive process, rising prices of crude oil and coal in the international market impact metal prices.
Moreover, Dey said the base metal is not under pressure from the government to contain the rising prices in the country.
India is the fifth largest producer of aluminium, after China, Russia, Canada and the US, with an annual consumption of around 6.18 lakh tons.
In May contract at the Multi Commodity Exchange, the metal was trading at Rs 128.80 per kg at 1400 hours, an increase of 0.82 per cent against the previous close of Rs 127.75 per kg. In June contract, aluminium was trading at Rs 129.50 per kg, up 0.97 per cent from previous close of Rs 128.25 per kg.
"The upward movement of crude oil and gold, weakening of the US dollar against euro coupled with power disruptions in China after the recent earthquake is helping in pushing up the prices of aluminium in the futures market," Karvy Comtrade's Research Analyst Vishal Muniyar pointed out.
Even as the aluminium inventory has gone up by more than 30,000 million tons, technical buying is pushing up the prices of the base metal.
Religare Commodities Ltd Metal and Energy Research In-Charge Somnath Dey said as aluminium production requires high energy intensive process, rising prices of crude oil and coal in the international market impact metal prices.
Moreover, Dey said the base metal is not under pressure from the government to contain the rising prices in the country.
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India is the fifth largest producer of aluminium, after China, Russia, Canada and the US, with an annual consumption of around 6.18 lakh tons.
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