Aluminium prices in the futures market experienced a dip on Monday, falling by Re 1 to Rs 259.30 per kilogram. This decline was attributed to reduced trading activity and a sluggish trend in the spot market. On the Multi Commodity Exchange (MCX), aluminium contracts for March delivery dropped by 0.38%, settling at Rs 259.30 per kg with 2,939 lots traded.
Market analysts highlighted that the easing demand from key consuming industries, such as automotive and construction, played a significant role in the price correction. Participants in the futures market trimmed their positions, reflecting cautious sentiment amid uncertain demand dynamics.
The global aluminium market has also been under pressure due to fluctuating supply chains and economic slowdowns in major economies. China, the world’s largest producer and consumer of aluminium, has reported subdued industrial activity, further impacting prices. Additionally, rising energy costs and environmental regulations have added to the challenges faced by aluminium manufacturers.
Despite the current downturn, experts suggest that the long-term outlook for aluminium remains positive, driven by its extensive use in renewable energy projects, electric vehicles, and infrastructure development. However, in the short term, prices are likely to remain volatile due to ongoing macroeconomic uncertainties and fluctuating demand.
Investors and traders are advised to monitor key indicators such as industrial output data, global supply trends, and geopolitical developments to make informed decisions.
Source: Web Team, C6N
