| Nickel and aluminium are expected to trade higher on supply crunch and production cuts. Angel Commodities said in monthly report that aluminium prices may gain on production cuts by the global producers Alcoa and Rusal which may shift the market balance into deficit. The metal would benefit from global sale of cars and light commercial vehicles which accounts for 20% of metal use.
Vehicle sales are expected to rise 5% in 2014 to a record 88.4 mn vehicles, thereby boosting the demand. Further, delivery delays at warehouses monitored by the LME exceed two years; will act as a positive factor for prices. With strong demand side fundamentals for Nickel, prices will trade on a positive note taking cues from the supply crunch that is likely to intensify as the Chinese higher grade ores stocks are about to exhaust in a month...............................................Full Article: Source
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