MCX Aluminium Supported After Recent Losses

MCX Aluminium futures stayed supported today as strength in US economic data triggered some buying in the metal after recent declines. The light metal fell on MCX this week after breaking below Rs 160 per kg mark and closed at Rs 156.40 per kg. However, steady uptick remained in place in global base metal as Copper prices edged up and Aluminium is also benefiting as a result. The MCX Aluminium futures are currently trading at Rs 156.70 per kg, up 0.20% on the day. The metal soared in a dramatic manner on fears of supply shortage following US sanctions on major Russian producer Rusal. The United States imposed a 10% tariff on Aluminium imports in March, kicking off a massive spurt that took the metal to near six year high.

US economic data remains good this week. Indicating solid economic growth in the second half of the year, the Conference Board released a report on Thursday showing a continued uptrend by its index of leading US economic indicators in the month of April. The Conference Board said its leading economic index rose by 0.4%. Growth in Philadelphia-area manufacturing activity unexpectedly witnessed a substantial acceleration in the month of May. The Philly Fed said its diffusion index for current general activity surged up to 34.4 in May from 23.2 in April.