Aluminium may show slight gain in the prices short covering

3 month forward LME Aluminum prices ended the day at $1766.50 mostly unchanged from its previous close. We saw slight intraday volatility in the prices while by end of the day market remained steady. We had no news from the fundamental front, Aluminum stocks at LME declined in a single day by 9700 MT but the impact was not visible clearly. This morning at LME, Aluminum is seen trading at $1775+ marginal gain over previous close. We believe the commodity may show slight gain in the prices as part of short covering. While, we look at the derivative analysis we expect a good amount of short covering in the contract therefore, possibly prices may rebound. Besides, there are no fundamental updates on the commodity. As stated above the declining of inventories could bring in slight support to the metal. So, overall, for the day we recommend buying nickel for the day. Also, there is news that strong demand globally and producer cuts may pull the market into deficit from H2’2014 therefore, we may see gradually the commodity may remain bullish in the near term.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.