Aluminium.....
Aluminium forwards in LME are experiencing a rise
in contango though on a slower basis. The contango is the condition when
the forward prices are higher than the cash markets. The rise in
contango is due to the fact that the inventories of Aluminium in hand
are still quite higher and as the global demand picks up this can start
to come down. But as of now the rise of Dollar and the fall in Chinese
demand is hitting the spot markets hard.
Aluminium forwards were
at a premium of $ 36 per tonne at the beginning of this year from where
they have increased to $ 42 per tonne currently. The prices of LME
forwards when last checked were at $ 2034 per tonne. Spot Aluminium in
London was at $ 1993 per tonne.
Aluminium was in limelight this
year when World Bank said that the commodity will be a winner in
substitution affect compared to Copper. High prices of Copper and
cheaper Aluminium will create mismatch between the two commodities that
will help Aluminium. However, all the metals have come down since the
forecasts due to lower appetite from China that these days consumes 40%
of major metals in the world.
Source by Commodity Insights
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