Aluminium futures gain on overseas cues, spot demand

Aluminium prices edged up by 30 paise to Rs 127 per kg in futures trade today as participants enlarged positions amidst a firming trend overseas.
Further, strong demand in the spot markets also influenced metal prices.
At the Multi Commodity Exchange, aluminium for delivery in September went up marginally by 30 paise, or 0.24 per cent, to Rs 127 per kg in a business turnover of 683 lots.
Likewise, the metal for delivery in October traded higher by 25 paise, or 0.20 per cent, to Rs 127.75 per kg in 18 lots.
Marketmen said apart from increased domestic demand, a firming trend in global markets, where it surged to the highest level in 18 months, amidst falling stockpiles on the London Metal Exchange (LME) and in Shanghai, influenced aluminium prices at futures trade here.

Meanwhile, stockpiles monitored by the LME dropped to a two-year low of 4.8 million tonnes on Aug 29. In China, the largest metals consumer, material tracked by the Shanghai Futures Exchange fell for the ninth week to a five-month low.
At the LME, aluminium for delivery in three months gained 0.8 per cent at USD 2,113 per metric tonne.