Aluminium futures gain 0.26% on firm spot demand

Aluminium prices edged 0.26 per cent higher to Rs 151.45 per kg in futures trade today as speculators built up fresh positions amid uptick in demand from consuming industries at domestic spot market.

However, weak trend overseas capped the rise.

At the Multi Commodity Exchange, aluminium for delivery in August edged higher by 40 paise, or 0.26 per cent, to Rs 151.45 per kg in business turnover of 150 lots.

Similarly, the metal for delivery in September was up by 30 paise, or 0.20 per cent, to Rs 152.55 per kg in 60 lots.

Analysts said fresh positions created by participants, tracking a firm trend at the spot market on rising demand from consuming industries, boosted aluminium prices at futures trade here.

Globally, aluminium prices fell for the first time in six sessions in early Asian trade today, after US President Donald Trump allowed relief on aluminium import quotas from Argentina.

Trump, who put in place tariffs on steel and aluminium imports in March, signed proclamations allowing relief from the quotas on steel from South Korea, Brazil and Argentina and on aluminium from Argentina, the US Commerce Department said in a statement on Wednesday.

At the London Metal Exchange, aluminium for delivery in three months fell 0.7 per cent to USD 2,157 a tonne, after jumping 1.8 per cent in the previous session. It hit a two-month high of USD 2,178 and has climbed for five straight days on rising input costs for smelters.

Also, the most-traded October aluminium contract on the Shanghai Futures Exchange fell 0.2 per cent to 14,930 yuan (USD 2,187.55) a tonne.