Declines In Chinese Aluminium Imports To Drain The Markets For Long Position Holders.

Chinese imports declines have created enough doubts in the minds of long positions holders of Aluminium. Rising Aluminium production can look very promising for the future outlook of the metal but that is not supported by rise of usage of Aluminium. All this along with monetary tightening measures in China and India will result in devaluation of the metal.

Moreover the US and Euro zone demand outlook is not very promising. We expect the prices of LME Aluminium to remain in the range of $ 2000-1920 per tonne. In domestic markets the prices are expected to remain in the range of Rs 94-88 per kg.

Indian automobile production maintained impressive growth in the month of April-June 2010. According to Society of Indian Automobile Manufacturers (SIAM) overall production increased by 33.2% in April-June compared to same period last year. Passenger Vehicles segment in April-June 2010 increased by 32.7 percent as compared to same period last year. Passenger Cars grew by 33.4 percent, Utility Vehicles grew by 25.3 percent and Multi Purpose Vehicles grew by 39.19 percent in April 2010 over April 2009.

World primary Aluminium production for the month of May 2010 was up by 5% to 2063000 tons as per International Aluminium Institute (IAI). For May 2009, the production of primary Aluminium was 1966000 tons.

Source : India Infoline