Aluminium – In non- ferrous pack , Aluminium witnessed extreme volatility , with prices initilly surging towords US$ 1,943/ ton on repots that China Hongqiao Group ( China’s largest aluminium producer) will cut its annual production capacity by 600,000 tons on account of environmental norms , equivalent to 1.6 % of country’s total operating capacity . However , doubts remain whether this curtaiment will actually materializa , as the company later elaborated that such cuts will be counterbalanced by increasing supply from new plants which have been approved by the government authorities. The company expects its total capcity to remain close to its current production level of 7.2 mn tons. We sense that producers will avert any major production cuts given the fact that prevalent price levels remain lucrative when compared with the abysmally low average during past few years.
Risk Taker May BUY at 123.75 for Target 124.70 – 125.50 with SL below price 122.85