Aluminium prices have moved up nearly 5 percent in the past week. In the last one month, it is up by closed to 12 percent and in this calendar year increased by 25 percent.
The prices of aluminium are moved up but they are not at an all-time high. For steel, it is at a decade high.
Demand has been very strong in China whether it is white goods products, autos or home appliances. Therefore, Chinese demand has been very strong.
Inventories have been coming down. Lower inventory is always good for premium on aluminium.
Aluminium production has been curtailed in China. In a couple of provinces, due to emission norms, some supply has been pulled out of the market.
On the valuation side, Nalco is trading at a discount because it is a government-owned company, Vedanta has its own set of issues but they are also into other commodities. Hindalco will gain because LME prices are moving up and Hindustan Zinc is fairly expensive valuation wise.
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(Edited by: By Bivekananda Biswas)