Aluminium futures traded 1.37 per cent higher at Rs 99.75 per kg, largely in tandem with a firming trend in base metals at the London Metal Exchange (LME).
Besides, increased demand at domestic spot markets influenced prices.
At Multi Commodity Exchange, aluminium for delivery in December rose Rs 1.35, or 1.37 per cent, to Rs 99.75 per kg in a business turnover of 20 lots.
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Metal for delivery in current month contracts was trading higher by Rs 1.30, or 1.34 per cent at Rs 98.30 per kg in 407 lots.
Analysts attributed the rise to a firming trend at the London Metal Exchange (LME) after Alcoa, the largest US producer, announced reductions in smelting and refining capacity. The move came in response to a flood of Chinese exports that have created a global surplus and driven prices to the lowest level in more than six years.
Globally, aluminium, the metal used to make everything from aircraft to window frames and drinks cans, climbed as much as 1.5 per cent to USD 1,516 per tonne, the highest level in a week.
