Aluminium futures rise on spot demand, overseas cues

NEW DELHI, May 2 (PTI) Aluminium prices edged up by nearly one per cent to Rs 99.20 per kg in futures trade on Thursday as participants enlarged their positions, supported by a firming trend overseas.

Strong demand in the spot markets also influenced metal prices.

At the Multi Commodity Exchange, aluminium for delivery in May inched up by 95 paise, or 0.98 per cent, to Rs 98.15 per kg in business turnover of 2,246 lots.

Likewise, the metal for delivery in June traded higher by 95 paise, or 0.97 per cent, to Rs 99.20 per kg in 241 lots.

Marketmen said apart from increased domestic demand, a firming trend in the base metals overseas on optimism the European Central Bank will cut interest rates to a record low and after the Federal Reserve said it will keep buying bonds, helped aluminium futures to trade higher.

Meanwhile, aluminium gained 1.1 per cent to $ 1,844.75 per tonne on the London Metal Exchange.