Indian Aluminium Scrap, MCX Aluminium prices rise in line with LME Aluminium

INDIA March 02 2016 6:35 PM     

MUMBAI (Scrap Register): India major aluminium scrap  commodities prices gained on Tuesday, while aluminium futures prices at Multi  Commodity Exchange settled higher as profit booking seen after prices of LME  Aluminium hit a 4-1/2 month high on Monday after top metals consumer China cut  its reserve ratio for banks in an effort to revive flagging growth.

The  major aluminium scrap commodities advanced on Scrap Register Price Index as on  Tuesday. India's major scrap commodities like aluminium ingots and aluminium  utensil scrap showed an uptrend during the day.

The most active February  aluminium contract on Multi Commodity Exchange settled up by 0.8 % to Rs. 107.35  per kilogram on Tuesday from previous close of Rs. 108.20 per kilogram. The MXC  aluminium prices touched an intra-day high of Rs. 108.70 per kilogram and an  intra-day low of Rs. 106.90 per kilogram during Tuesday.

Investors  welcomed the move by China's central bank to reduce the amount of cash that  banks must hold as reserves for the fifth time since February last year.  

Meanwhile Aluminium prices are fundamentally not bullish as the massive  stock overhang could turn out to be an issue for the market and players expect  it will require even lower prices to prompt more of the cuts that are needed to  create a big enough deficit to reduce the global stock overhang.