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Aluminum Prices Are Seen Trading At $1787 Up By 0.87%

ByCommodityOnline
Published 05/19/2014, 06:38 AM
Updated 05/14/2017, 06:45 AM

Aluminum: Review- Excerpt from weekly report: Aluminum prices after falling over 5+% in the month of May showed a slight positive movement in the week ending on 15th May 2014. As of Friday 3 month rolling forward LME Aluminum prices are seen trading at $1787 up by 0.87% from its previous week’s close while the weekly high was $1810. We had suggested a mixed view on the metal in the last week while our bias was onto buy side from lower levels. However, at the domestic market the gains were eradicated due to Indian rupee appreciation. The primary reasons for the commodity to suggest buy was rising premium in the world market while the cash price of Aluminum was seen trading close to cost of production for a few miners.
Aluminum

Therefore, the rebounding in the prices was anticipated. The Aluminum premium over cash has been maintained higher at USD290/MT. The global aluminium inventory at LME also showed a decline from 5303475 tons to 5264450 down by 0.75%. Interestingly, close to one per cent decline in the inventory and rise in the prices near 1% looks highly correlated. Besides, the economic numbers released from various countries were mixed in performance while the USD index trading steadily higher by 0.10% may have also supported the metal to move higher.

This morning at LME, Aluminum is seen trading at $1776 up by $13 while in SHFE the same for July future is trading higher by 0.73% at 13130 Yuan/MT. However, we believe the gains may be very limited at the domestic market due to Indian rupee appreciation. We have an issue in the market as long as Indian rupee continues to appreciate the performance of aluminium in domestic market with global would be different.

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