Aluminium rules the commodity charts: Angel Commodities Broking
Views of Ms. Kaynat Chainwala (Research Analyst- Base Metals, Angel Commodities Broking):
"Aluminium is taking its number one position in the base metals space and probably the best amongst the non agri commodities spectrum quite seriously as supply concerns behind the rally show no signs of easing at all.
In Thursday's session, LME Aluminium touched $2215/t, highest since March 2012 while MCX prices hit nine year highs of Rs.142.6/kg as stringent measures by the Chinese government ahead of winter cuts in Aluminium and its raw materials fuelled supply concerns further. In line with the same, world's top aluminium producer, China's Hongqiao Group together with another alumina plant in Binzhou, has been ordered to cut their combined 8 million tonnes of annual alumina production by 2.5 million tonnes from Nov. 15 to March 15, 2018.
Sensing the upcoming winter shortage, smelters have been forced to increase their alumina supplies as a result of which Chinese Alumina imports on a year to date basis have jumped 61 percent in the last three months.
Upcoming winter cuts have boosted expectations of a tighter Aluminium market balance in 2018, and hence one can expect the light metal to gain further and retain its top position in the non agri commodities space in 2017."