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Aluminum May Trade Marginally Higher, Positive Cues

Published 02/21/2014, 04:25 AM
Updated 05/14/2017, 06:45 AM


--Aluminum has been the lone outperformer in the yesterday's trading session at the LME platform in line with our yesterday's view.

--We expect the aluminum prices to continue its trend in the today's trading session as well. Yesterday we updated about probable supply cuts anticipated by Alcoa and Rusal for 2014 especially outside China. Additionally, according to secondary sources major Aluminum producer Rusal expects the Aluminum premiums might rise further by 50% and estimates that the further new supply of aluminum which would increase in the wake of new LME warehouse rules might move get shifted off exchange there by creating supply tightness in the commodity.

--During the day we expect aluminum prices to trade marginally higher as the metal might take positive cues from the comments of Rusal and the additional support might come from the positive global equities.

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