Base Metal Tips (Aluminium)

Aluminium three month forward prices have declined by 7.6 percent in 2012 so far. Lower demand from Europe, US, China and Japan coupled with rising production and inventories has forced metal to stay on a slope. The LME inventories have seen an increase of 2 percent since the beginning of 2012. In Shanghai, Aluminium stocks in warehouses have seen a jump 100 percent jump from 221624 tonnes in January 2012 to 445242 tonnes in October 2012.
LME Aluminium declined to $ 1911 per tonne in October from $ 2068 per tonne at the beginning of this year. Financing deals in Aluminium didn't let the metal decline too much in London Exchange earlier in this year. Indian Aluminium futures have seen a decline of 4 percent in its value. The fall was much lower compared to international exchange due to choppiness in Dollar against the Rupee.