LME Aluminium May Witness Below $1800, Buying Recommended
CommodityOnline | May 15, 2014 07:31AM ET
Aluminum: We had the local trading only for half session yesterday however; the metal in the domestic exchange traded higher and settled the day at Rs. 105.65 up by 1.40% taking cues from LME which ended higher by 1.57%. One of the major reasons for the metal to rise in the global market is declining inventories. This morning at LME, aluminium counter is trading at $1800 and we believe Aluminum can still be a buy from lower levels by looking at its inventory performance which has declined over 21000 tons in just two working days. Moreover, the commodity had declined much below $1800 near the cost of production so a good amount of rebounding in the price is expected. Also, while we look at the derivatives front we see, price has been moderately supported by the volumes and the open interests is maintaining steady and likely that eventually the commodity may remain elevated. Hence, we are suggesting buying the metal from lower levels.
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