Aluminium is likely to remain volatile in 2012. Intensifying economic concerns, coupled with the euro zone debt woes may keep the metal under pressure in the first half. In the second half, however, the light base metal is set to get support from a possible recovery in manufacturing and infrastructure sectors.

Prices accentuated in first half of 2011 to reach its two-year high of $2803 a tonne, at the London Metal Exchange (LME) translating thereby at Rs 124.15 a kg on the Multi Commodity Exchange (MCX) on back of growth optimism worldwide. But the metal failed to carry the strength as euro zone crisis took over and slackening manufacturing activities.

The metal market experienced paradigm shift of production centre.