MCX Aluminium hits record high on supply woes: Angel Commodities Broking

Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):

"Aluminium touched record high of Rs.149.2/kg on the MCX in today's session buoyed by London Metal Exchange's decision to keep Rusal aluminium out of its warehouses in the light of latest US sanctions.

Billionaire aluminum tycoon Oleg Deripaska and his company Rusal, which controls around 7 percent of total global Aluminium output, fall in the list of US sanctions. This sparked supply concerns since Rusal accounts for seven percent of global output, thereby pushing aluminium prices on the LME and MCX higher by a whopping 15 percent in just a week.

For five days in a row, the metal has been basking in the glory of supply disruption woes boosted after US imposed sanctions on seven Russian oligarchs and 12 companies controlled by them, as well as 17 Russian government officials. This is the US' most aggressive action against Russia for its alleged involvement in the 2016 US elections."

Source : Equity Bulls

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