Aluminium stocks shine as prices hit 2-year high on LME
Three aluminium makers rose between 1.97% to 3.5% after aluminium futures hit their highest in nearly two years on the London Metal Exchange.
National Aluminium Company (up 3.95% to Rs 464.30), Hindalco Industries (up 2.58% to Rs 201) and Madras Aluminium Company (up 1.97% to Rs 654.65), moved higher.
Aluminium prices on the London Metal Exchange (LME) are currently at two year high on a plethora of cues. The inventories of the metal hit a one month low of 950200 tonnes yesterday on the LME while the extremely bearish undertone in the US dollar, which hit an all time low of 1.5162 against the Euro yesterday, also supported the metal. The continuous deceleration of the US dollar is seen positive for the dollar denominated assets.
Expectations that China's recent snowstorms and power outages may reduce primary aluminium output by about 600,000 tonnes this year, equal to 5% of the country's 2007 output, also support aluminiuim prices.
The three-month aluminium futures on LME ended at $3100 per tonne yesterday while in the domestic markets, the MCX Aluminium futures closed at Rs 122.90 per kilograms (kg), gaining almost 17% in last two weeks.