Aluminum was the worst performer at the LME platform down by 0.8% to close at $1783/MT as the stronger dollar which strengthened on the expectations that the Fed might continue to taper its bond buying program on the back of the IMF increasing its Global growth forecast to 3.7% from 3.6%, which weighed negatively on the commodity.
Though the aluminum inventory picture is depicting positivism in the form of declining inventories and increase in the cancelled warrants. The declining inventories and increase in the cancelled warrants did not protect the commodity from falling in the yesterday,s session.
We expect Aluminum to trade in a ranged manner at the MCX platform as on one side the commodity might take positive cues from the high physical premiums which are still hovering above the 20 cents per pound mark due to supply tightness. However on the other hand the metal might take negative cues from the weak Chinese manufacturing data.