Aluminum Commodity Trading
Did you know that Aluminium is the most abundant metal in the earth's crust?
In 1900, annual global output of aluminium was only 1000 tonnes. However by end 2010, it had reached around 40 million tonnes, making aluminium the world's second most used metal.
About 26% of total aluminium consumption is attributed to transportation, 22% to packaging and construction each, and the remaining to electrical, machinery and other industries.
What makes aluminium a wise investment?In physical market, Aluminium is the second-most used metal after steel, due to its versatility.
Low density and strength make it ideal for construction of aircraft, lightweight vehicles, and ladders.
The use of one kilogram of aluminium replacing heavier materials in a car or light truck can save a net 20 kg of CO2 over the life of the vehicle. In 1990, the average passenger car contained between 40 and 80 kg aluminium, in 2009, the average is between 120 and 150 kg, signaling rising usage of the metal by automobile Industry.
Further corrosion resistance makes aluminium a good material for packaging like drink cans and foil.
Also it is widely used in buildings and construction. Siding, roofing, gutters, window frames, hardware, paint are made from aluminum.
Going forward Aluminium usage is poised to rise further.
Why is aluminium commodity a wise investment for an Indian trader?India is fifth largest consumer of aluminium after China, US, Japan and Germany.
India is self-sufficient as far is production is concerned. India produced 1.5 million tonnes of Aluminium in 2010 while the consumption stood at 1.48 million tonnes (Source - GFMS)
With growing urbanization and industrialization and automobile industry in India, the demand will continue to see a steady rise.
The metal is traded as a commodity mainly on London Metal Exchange (LME), Shanghai Futures Exchange (SHFE) and Multi Commodity Exchange of India (MCX), LME is used as a benchmark across the globe.
Aluminium is also one of the highest traded commodities on Indian commodity bourses. MCX Aluminium price can be used as reference for Indian traders. As the commodities market grows and per-capita income rises, demand for industrial metals will remain higher.
How can Kotak Commodity help me invest in aluminium?The Kotak Commodity Gateway Account will give you access to research and trading facilities to conduct aluminium trading in India along with other non-agricultural commodities. While SMS alerts and Call & Trade will provide you regular updates on aluminium prices in India, our expert research reports will help you make informed decisions. Our brokerage rates are attractive. The best part is that our Gateway account is a lifetime free trading account.
To learn more about Kotak Commodity Gateway Account, please click here.
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