Aluminium prices edged higher to Rs 194.95 per kg on April 30 as participants increased their short positions as seen by the open interest. The base metal traded in the positive territory after a gap-up open tracking firm global trend.
The momentum indicator Relative Strength Index (RSI) is at 72.10 which indicates bullish movement in prices.
After 14 days of successive fall in stocks, 64,650 tonnes of aluminium were delivered into LME-accredited warehouses.
The non-ferrous metal traded bullish in April on hopes of a revival in the global economy with recovering industrial activities in the Asian markets and higher imports from China.
According to International Aluminium Insitute, global aluminium production for March 21 reported being around 5.725 million tonnes, higher compared to the previous month’s production of 5.187 million tonnes.
Sunand Subramaniam, Senior Research Associate, Choice Broking, said, “We expect International Aluminium Futures to trade bullish as the COVID vaccination process has picked up the pace. The Chinese and United States economic data has shown a significant recovery over the months and expected to be higher which is likely to support aluminium prices along with other base metals.”
“China’s aluminium production for March has been estimated around 3.310 million tonnes, higher compared to 3.001 million tonnes reported during the previous month. Countries in Asia (excluding China), North America, and western and eastern Europe have also reported higher production for February 21 compared to the preceding month. Overall, we expect a bullish trend in MCX Aluminium futures for the month ahead,” Subramaniam noted.
The US dollar trades higher at 90.83, or 0.27 percent in the evening session against the rival currencies.
MCX METLDEX jumped 91 points, or 0.60 percent, at 15,182 at 16:24. The index tracks the real-time performance of key base metals.
In the futures market, aluminium for May delivery touched an intraday high of Rs 195.30 and a low of Rs 193.35 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 175.25 and a high of Rs 196.70.
Aluminium delivery for May gained Rs 1.65, or 0.85 percent, to Rs 194.95 per kg at 16:25 hours with a business turnover of 2,072 lots. The same for June contract rose Rs 1.50, or 0.78 percent to Rs 194.85 per kg with a turnover of 148 lots.
The value of May and June’s contracts traded so far is Rs 125.77 crore and Rs 2.81 crore, respectively.
At 1057 (GMT), the base metal price was up 0.90 percent, quoting at $2,436.50 per tonne in London.
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