MCX ALUMINIUM NEWS

BARGAIN HUNTING HELPED ALUMINIUM TO EDGE UP AT MCX

Date: 12/04/2012

Aluminium recouped previous losses at MCX and buoyed by 0.8% at Rs 107.05 per kg with its intraday high at Rs 107.2 per kg and low at Rs 106.05 per kg on Wednesday, 11th April. Bargain hunting coupled with the better than expected results of the Aluminium giant company Alcoa helped the metal to end with modest gains. However, the woes on the economic growth of the major economies such as US, China and Euorpe still weighed on sentiment and curbed huge gains in the metal.

The open interest dipped by 7% to 7210 lots and volume traded stood at 8893 lots compared with 9859 lots traded last day. The contract traded below 9-day EMA and RSI stood at 33.4. At LME, Aluminium dropped by 0.7% at $2074.5 per tonne still near to the 3-month lows.

In industrial metal news, the Aluminium giant company, Alcoa reported a profit in its first quarter 2012, helped by productivity improvements, which offset a fall in realized average aluminum prices.

In the three months to March 31, Alcoa reported net attributable income of $94 million, or 9 cents per diluted share, down from $308 million (27 cents per share) a year earlier, but ahead of analysts' expectations of a 4 cents/share loss. Total sales revenues stood at $6 billion, up from $5.99 billion in Q1 2011.

Alcoa said that a 9% year-on-year drop in average realized aluminum prices was partly offset by higher third-party shipments by its upstream businesses, better volume and mix in the midstream business and improved volume in the downstream business.

The company's average realized aluminum sales price fell to $2,433 per mt in Q1 from $2,682 per mt in Q1 2011, Alcoa said in its earnings statement. The average realized price beat the Q1 average of the London Metal Exchange cash settlement aluminum price of $2,177.06 per mt.

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