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Aluminium scrap prices firm

As per Edelweiss Securities, that aluminium scrap prices are firm after having reached their bottom. Aluminium scrap prices fell only 12-13% from the highs whereas those of steel scrap fell by 25% to 30% from the highs indicating strength of the aluminium market as compared to the steel market.

Copper and aluminium inventories are in declining trend thus signifying demand supply improvement. Copper-LME inventories have been falling for last 5 months ie since March 2010 and are now down 20 Aluminium-LME inventories have gone down from approx 4.6 million tonne in January 2010 to 4.4 million tonne a reduction of approx 5%. Since an estimated 75% of LME inventory is not available to the physical market, the effective impact is 15%.

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