Aluminium futures gain 0.51% on high demand

Aluminium prices advanced by 0.51 per cent to Rs 146.55 per kg in futures trade Wednesday as speculators raised bets amid increasing demand at the spot market.

At the Multi Commodity Exchange, aluminium for delivery in September edged up by 75 paise, or 0.51 per cent, to Rs 146.55 per kg in a business turnover of 138 lots.

Similarly, the metal for delivery in October contracts was trading higher by a similar margin to Rs 148.10 per kg in two lot.

Analysts said expansion of positions by participants on the back of soaring demand from consuming industries in the physical market, led to the rise in aluminium prices in futures trade.

A firm trend overseas where base metal prices rise, as investors shrugged off an escalation of the US-China trade row, also supported the uptrend, they said.

Meanwhile, China responded to the latest US tariffs on USD 200 billion of Chinese goods with tariffs on about USD 60 billion worth of US goods, as previously planned, but has reduced the levy it will collect on the products.