Aluminium futures rise 0.71% as demand picks up

Aluminium prices were up by 0.71 per cent to Rs 148.20 per kg in futures trade today as speculators built up fresh positions, triggered by a pick up in demand in the spot market.

However, a weak trend overseas, capped the gains.

At the Multi Commodity Exchange, aluminium for delivery in May went up by Rs 1.05, or 0.71 per cent, to Rs 148.20 per kg in business turnover of 42 lots.

Similarly, the metal for delivery in April contracts edged up by 95 paise, or 0.65 per cent, to Rs 147.30 per kg in 463 lots.

Analysts said fresh positions created by traders due to uptick in demand from consuming industries in the physical market led to the rise in aluminium prices at futures trade.

They said, however, weak global trend where the metal fell 1.4 per cent, retreating for a fifth straight session, as the softening of the US sanctions on Russian producer United Company Rusal continued to weigh on prices, capped the rise.

Globally, aluminium for delivery in three-month was down by 1.4 per cent to USD 2,196.50 a tonne, having closed down 3 per cent yesterday on the London Metal Exchange.