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.