MCX Aluminium Holds Onto Gains Amid Favorable Global Cues

Aluminium futures on MCX are holding on their recent gains as global prices hover around their seven year highs following the trade spat between US and Russia. Global mining giant Alcoa is projecting a global deficit for both aluminum and alumina in 2018. Due to delays in projects to expand smelters in China, the Company expects the global aluminum deficit to grow to between 600 thousand metric tons and 1 million metric tons, up from last quarters deficit estimate of between 300 thousand metric tons and 700 thousand metric tons. Global aluminum demand growth is projected between 4.25 to 5.25%. In alumina, Alcoa projects a global deficit between 300 thousand metric tons and 1.1 million metric tons for full year 2018, primarily due to supply disruptions in the Atlantic region. This projection compares to last quarters expectations of a balanced market. MCX Copper futures approached Rs 170 per kg mark this week, recording a spurt of nearly Rs 40 in a span of around two weeks. The metal is currently trading at Rs 166.15 per kg, up half a percent on the day.