Quote on Aluminium By Mr. Yash Sawant, Angel Broking Ltd
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Below is quote on Aluminium By Mr. Yash Sawant, Research Associate, Angel Broking Ltd
Mounting supply worries for Aluminium
In July’21, China’s Aluminium output was down for the third consecutive month following the stern power consumption norms in key producing regions kept the smelter operating rate low. As per the National Bureau of Statistics, China produced 3.26 million tonnes of primary Aluminium in July’21, down about 0.9 percent from June's 3.29 million tonnes.
Another round of energy usage limitations imposed in China’s Yunnan province (accounts for 10 percent of China’s Aluminium output), Inner Mongolia, Guangxi, and Guizhou might keep the supply of Aluminium from China tight in the coming months.
The continuous withdrawals of Aluminium inventories from the LME monitored warehouse further signaled towards a tighter supply of the light metal. LME Aluminium inventories are down over 30 percent since March’21.
Mounting supply side stress might outpace the concerns over slowdown in China’s economy and push Aluminium prices on the MCX higher towards Rs.217 per kg. (CMP: Rs.209)
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