Base Metals Preview: MCX Aluminium Takes Another Tumble

MCX Aluminium futures extended their losses yesterday as the global price action remained tepid. The local futures crashed under Rs 150 per kg and closed down 3% at Rs 146.35 per kg. The US has indicated it could ease sanctions against Russian aluminium producer Rusal that have sent global Aluminium price soaring to seven year top, leading a crash of nearly 10% near $ 2200 per tonne in the metal prices on LME on Monday. The US Treasury said if billionaire Oleg Deripaska sold his stake in the company, the worlds second-largest aluminium producer by output, it could cut or lift the sanctions. It also extended the time limit for US and non-US citizens to wind up business with the company by almost five months, to October 23. Since the sanctions against Rusal were introduced on April 6, global Aluminium prices have risen by as much as a third as the metal makes 6% of the worlds supply of the metal. LME Aluminium stayed under pressure yesterday too and stayed near the recent lows.