Aluminium Takes The Lead
In the meantime, gold and silver lost their leading positions
The domestic aluminium prices have hit an all-time high recently amid supply concerns and high demand. A shortage of coal reported at several power plants in the country has pushed the prices of this energy-sensitive metal in the domestic markets.
The commodity markets have delivered a volatile performance during the recent fortnight. Commodity futures have portrayed gains up to 5.94 per cent and a plunge up to 8 per cent. The commodity climbing to the top position was aluminium. On MCX, the aluminium futures have zoomed 5.94 per cent during the fortnight. The domestic aluminium prices have hit an all-time high recently amid supply concerns and high demand. The aluminium futures had started the year with a price close to Rs 160 per kg and since then has gradually taken a path towards a record high of Rs 215.20 per kg.
Meanwhile, a shortage of coal reported at several power plants in the country has pushed the prices of this energy-sensitive metal in the domestic markets. Also, output cuts from China lowered the global supplies and contributed in lifting the prices higher. The highest gaining commodities after aluminium were zinc and oil. Zinc futures on MCX gained 4.53 per cent during the fortnight. The upward price drivers for zinc include disruption of zinc concentrate supplies due to suspension of large zinc mines as a result of the pandemic’s effect in various countries.
WTI crude oil prices raced up 4.12 per cent whereas Brent crude oil prices were up by 3.97 per cent. Gradual resumption of the production capacities in the US’ Gulf of Mexico following two hurricanes and bets over increasing global demand have supported the growth in oil prices during the fortnight. During the fortnight, MCX Lead and MCX Copper rose by 2.08 per cent and 0.67 per cent, respectively. Chile, the biggest copper-producing country, has cut its annual price forecast for the metal.
The overall sentiments regarding copper remained modest despite mixed economic cues. MCX Cotton slipped by 0.89 per cent as the upside movement was capped amid worries of crop damage in the central and western parts of India. The lowest performing commodities during the fortnight were gold and silver. MCX Gold plunged by 3.24 per cent whereas MCX Silver went down by 8 per cent. The bullion prices declined tracking global cues with markets watching the US Federal Reserve meeting for clues on when the central bank will start tapering its stimulus measures.