Aluminum prices too low - when will it recover?

chethan

Aluminum prices on MCX have been in downtrend for last 3 months. Currently around ₹215 per kg. Our processing business is suffering because we bought inventory at higher prices. Does anyone see recovery in aluminum prices anytime soon? What is causing this fall?

chethan

Reply by: MetalsFundamental_Analyst
Aluminum prices are down globally not just in India. Main reasons are: 1) China economic slowdown reducing demand 2) Increase in aluminium production capacity 3) Lower energy costs making production cheaper. Until China demand picks up significantly, I dont see major recovery. May remain in ₹210-225 range for next quarter.

chethan

Reply by: Commodities_Research
Also watch LME aluminum stocks. They have been building up which indicates oversupply situation. On positive side, if China announces major stimulus package then aluminum demand will jump as its used in construction, automobiles, packaging everything. So keep some buying ready if prices fall below ₹210.