ZOID RESEARCH 28-NOV-2014 : ALUMINIUM

3M LME Aluminum declined yesterday, by around 0.82%, to $2043 MT, as a deflationary impact of the slumpingoil prices. Aluminum is the most energy intensive metal amongst the entire base metals complex with around 30% of the cost of production being attributed to the power usage. Decline in oil prices means a lower cost of production for the metal which in turn created a downward pressure on the commodity. Fundamentally, Aluminum continues to look bullish as yesterday the backwardation further rose to $31 MT indicating a rise in the spot demand. For the intraday we recommend selling Aluminum from higher levels as the decline in oil prices might continue to weigh upon the metal although we continue to maintain a bullish stance for the metal on a fundamental note.

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