Aluminium prices increase after unrest in Guinea
Aluminium prices saw a spurt of Rs 5 per kg on Tuesday in the March contract on MCX in trading up to 11.55 pm, as the international market gained on supply concerns.
By TNN |
MUMBAI: Aluminium prices saw a spurt of Rs 5 per kg on Tuesday in the March contract on MCX in trading up to 11.55 pm, as the international market gained on supply concerns.
The price rose from Monday’s close of Rs 119.40 per kg, to Rs 124.30 on Tuesday. The contract was trading at Rs 125.90 on MCX on Wednesday. The open interest in the March contract has risen to 5,10,000 kg from 3,90,000 kg on February 1, ‘07.
Aluminium prices on the London Metal Exchange rose 4% on Tuesday as concerns grew over bauxite supplies from Guinea in West Africa, where anti-government protests resumed.
On Wednesday, aluminium for delivery in three months on LME was up $24 or 0.9% quoting at $2,838/2,843 a tonne in the early part of trading. Technically aluminium moved higher with investors trying to hit the $3,000-level in the coming weeks. Guinea produces over 8 lakh tonnes of alumina annually and is the world’s largest bauxite producer.
According to MAPE ADMISI commodity research, the domestic supplies are not likely to be affected, as India is self-sufficient in aluminium. The prices both in the physical and in futures market, however, track LME prices, which has led to the rise in the MCX contract.
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