India is full of investment opportunities and avenues. Among them, the commodity market captures a huge space. Commodities are the raw materials that we use to make final products. There is a variety of ranges available under commodity trading, like bullion, base metals, energy, etc. In order to make the subject clearer, we divide the commodity into three different sections. Let us talk about the Aluminium Price Chart and Analysis that comes under the base metal section.
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Before proceeding further, let’s have a quick idea regarding the base metal. The term “base metal” itself suggests its meaning. The base metal is exactly the opposite of bullion. They are easily available and inexpensive. Base Metals are generally used for commercial as well as industrial applications. Among the broad range of metal commodities, we will focus on the Aluminium commodity.
Commodity Exchange in India
India has quite a promising market in commodity trading. In order to regulate the market, there is a number of regional and national commodity exchanges present in the country. Among them, MCX (Multi Commodity Exchange) is the most popular one. Apart from this, there are exchanges like NCDEX, NMCE, ICEX, etc. MCX closely follows the international price of Aluminium and trades on the LME (London Metal Exchange). If you notice properly, you can also find a similarity in the Aluminium prices with the LMX price. A snapshot of LME’s graph on Aluminium’s production, supply, and average are given below:
Aluminium, A Base Metal
Aluminium is a metal that is never found in its metallic form. It is basically a compound of other elements, discovered by the Danish Hans in the early 19th century. Later, cost-effective ways of extracting the metal were discovered. Through primary productions, annually 60 million tonnes of aluminium are being produced globally. India is number four in global Aluminium production. Industries like automotive, building and construction, defence, electrical-electronics, pharmaceuticals, and white goods are huge users of Aluminium.
Usage of the Base Metal, Aluminium
There are multiple uses of the base metal. Let us check some of the usages below:
Automobiles
In the automobile industry, Aluminium is an essential metal. For making lightweight parts, the use of Aluminium is widespread. Apart from this, it helps to maintain fuel efficiency in cars.
Building and Constructions
In the field of construction, people use Aluminium as an energy-efficient and sustainable metal.
Electrical
Aluminium works as a good conductor of electricity. People widely use it in making electrical wiring.
Aerospace
In the construction of rockets and aircraft, the usage of Aluminium is vast. People use Aluminium alloys in this industry.
Foil and Packaging
In the Packaging of Medicine packets, beverages, sodas, and candies, people use Aluminium. It keeps the food products clean and refreshed. People widely use Aluminium cans for packing food in foreign countries.
Investment Options
As the price of Aluminium is quite low in comparison to others, it plays an important investment option. High demand for aluminium raises its value to a great extent. Both the over-the-counter market and the exchange trade aluminium. The commodity market in India captures a lot of attention. Aluminium as a commodity plays a vital role in the Indian financial field.
Reasons to Invest in Aluminium Commodity
- Industrial demand for a particular base metal is one of the main reasons for high demand.
- General-purpose usage of aluminium pushes the demand for the metal upwards.
- Lower input cost makes it more demandable.
- Its high demand worldwide makes the metal more valuable.
In this article, you will get the live-updated Aluminium price as well as a daily chart, and live technical indicator analysis. Aluminium Price support and resistance, Aluminium Futures Daily Candlestick Chart are given below:
The chart is a live chat and will update automatically. Users only need to keep the page refreshed.
The Use of Aluminium in the Indian Commodity Market
Aluminium is such a metal that has versatility. The lightweight and robust material is worth adding to any investor’s portfolio for getting a return on investment. Moreover, this is considered the second most widely used metal after steel. Recycling Aluminium is a power-friendly affair that requires about 5 per cent of the power. It is such a material that also has an abundant supply and demand in India. Therefore, investors can gain profit from the commodity on a daily basis.
At the beginning of the article, I mentioned the Multi-Commodity Exchange. Generally, a vast section of investors chooses futures trading of the commodity through the MCX. The future commodity market widely trades aluminium. There is intraday trading too. MCX closely follows the price of Aluminium, traded on the London Metal Exchange or LME. Let us check a snapshot of LME below:
The London Metal Exchange (LME) links the above production data, average price, and supply of aluminium.
MCX calls the mini version of Aluminium trading “Alumini” and the regular version “Aluminium.” The lot size of Aluminium in MCX is 5 MT, while in ALUMINI is 1 MT. Small traders can trade for a 50-paise to 1 rupee gain multiple times. Traders can regularly check the global Aluminium price as well as the price curve by following the LME website.
For Intraday trading, traders can use pivot points and the super trend to get an achievable trade.
Final Thoughts on Aluminium Price
Overall, it is clear that the aluminium price has remained subject to fluctuation over the years. Therefore, we encourage all who may be affected by dips or rises in aluminium prices to stay informed and keep their eyes on the market so they can make smart decisions about purchasing or selling as needed. Hence, being aware of changes in aluminium price will help you plan and strategise better for long-term success.