Aluminium - Prices may trade higher over output cut by Alcoa, Rusal

摘要

For continuous second month in a row, aluminium prices on the LME is gaining traction as it surged by around 1.5 percent last month. The prime reason being reports from the leading global producer United Co. Rusal that the aluminium market will be in deficit this year by 1.3 million metric tonne. On the other hand, Indonesia's raw material export ban has led to skyrocketing of nickel prices since Jan'14 in turn pushing aluminium prices higher. Indonesia was the key supplier of bauxite between 2007 and 2013 as the country was responsible for 60 percent of global exports. Banning of key raw materials used to produce aluminium is also the key factor behind the rally.