Aluminium recovered for the second straight day as traders started to build some long positions after a debacle this week. Heavy correction in the metals has increased speculation for buying in metals. LME three month Aluminium delivery contract was trading at $ 1911 per tonne, up 0.52 percent.
In coming days, the prices have resistances at $ 1950 and $ 2000 per tonne levels. On the lower side, it is free to move towards $ 1800 per tonne and $ 1700 per tonne levels.
Indian Aluminium for April expiry was trading at Rs 102.4 per kg, up 0.35 percent. The prices are expected to rally towards Rs 102.95 and 103.5 per kg. Support for the metal is at Rs 101.9 per kg.
The prices of LME Aluminium dropped to a eight month low this week. Heavy production increases in the world and lower demand appetite of China bombarded the metal to eight month lows of $ 1841.5 per tonne in April.
The inventories in LME warehouses are almost near 5.2 million tonnes This is the reason that one has seen decline in world Aluminium production in last three months though from previous year levels the production is still up. Significantly high inventories are making life tough for markets.
Source by Commodity Insights
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