to new and prospective investors, page-40

come in spinner...I am not aware of a so widely used metal that has as bright a future as aluminium. Think about it doors, windows, cars, planes, appliances, roofing and construction materials.

http://www.hindu.com/thehindu/holnus/006200805211921.htm

Aluminium prices likely to firm up
New Delhi (PTI): Aluminium prices in the futures market are likely to firm up in the coming days on global shortage of coal and surging crude oil prices, say analysts.

Religare Commodities Ltd Metals and Energy Research In-Charge Somnath Dey said aluminium is likely to trade firm in the futures market at Rs 131 per kg level as it is an energy intensive metal.

"The production of the metal requires high energy intensive process and increase in crude oil prices or shortage in coal will lead to increase in aluminium prices," he said.

Aluminium today opened lower by Rs 0.7 at Rs 125.35 per kg in Multi Commodity Exchange (MCX). However, it firmed up to Rs 126.40 per kg in afternoon trade, a gain of Rs 0.35 per kg.

Navin Bora, Partner at Ernst and Young, said that there is a global shortage of coal, which is likely to strengthen the base metal.

Karvy Comtrade's G Harish pointed out that positive trend in other base metals at the London Metal Exchange (LME) also helped aluminium prices rise.

The other price driving factor, Harish said, is the increase in inventory level at the LME, which has gone up by 3,900 tons and the entire market is in surplus for next year.

Anticipation of huge construction works after the earthquake in China, the largest consumer of the metal, led to speculative buying and surging of aluminium prices last week. But after sharp rise in prices, the market is now into corrective measures and consolidating the prices, he added.

The base metals yesterday saw major movements, with aluminium prices falling by 1.11 per cent as traders were seen booking profits by reducing their commitments, triggered by subdued global markets.