MUMBAI: Aluminium futures experienced a drop on Tuesday, with prices slipping by 65 paise to Rs 248.40 per kilogram on the Multi Commodity Exchange (MCX). This decline is attributed to market participants trimming their positions due to weak demand in the spot market. Aluminium futures for delivery in February saw a decrease of 0.26%, settling at Rs 248.40 per kg in 2,743 lots.
Analysts indicate that the key factor behind this price dip is the softening demand from consuming industries. As demand weakens, particularly from sectors reliant on aluminium, prices have been pressured lower. The current market trend suggests that the demand from these industries may remain subdued, continuing to affect the price movement in the near term.
While the aluminium market faces challenges from weak demand, the situation could change if there is a shift in consumer activity or an external economic boost. However, for now, the prices are expected to stay on the lower end, with a cautious outlook in the upcoming trading sessions.
Source: Web Team, C6N
