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Saturday, November 27, 2021

MCX Aluminium likely to move in a range of 141.2-148.2

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Technically Aluminium market is getting support at 142.9 and below same could see a test of 141.2 level, And resistance is now likely to be seen at 146.4, a move above could see prices testing 148.2.

Aluminium on MCX settled up 0.52% at 144.60 gained on short covering tracking firmness from LME aluminium prices which registered a second consecutive day of increase last night. It stood firm above the five-day moving average, jumping to a high of $2,134.5/mt with resistance at the 10-day moving average.

Its inventory across LME warehouses rose 9,275 mt to 1.12 million mt. Earlier this year Aluminium prices gained as a far bigger hit to supply came on April 6, when the Trump Administration imposed sanctions on Russia’s Oleg Deripaska and his Rusal aluminium empire.

Russia was the second largest supplier of commodity-grade aluminium to the U.S. in both 2016 and 2017. Imports of Russian metal were 600,000 tonnes and almost 700,000 tonnes respectively in the last two years.

The impact on the premium was as significant as the March tariffs confirmation. Indeed, in terms of further-dated CME premium contracts, the impact was actually greater, the six-month futures contract jumping more than 13 percent in a day.

The LME aluminium price went supernova at the same time, three-month metal soaring to a near 7-year high of $2,718 per tonne. LME aluminium has since corrected back down to a current $2,105 as the market prices in a deal between the U.S.

Treasury and Rusal to allow sanctions to be listed. But the premium hasn’t corrected for the good reason that there is a lot of Russian-brand aluminium already in the United States thanks to those high imports over the last two years. Some end-users may be happy using it.

Trading Ideas:
–Aluminium trading range for the day is 141.2-148.2.
–Aluminium gained amid investor expectations for a decline in output following a statement from China pledging to shut down some smelters.
–China’s inventory of primary aluminium across eight major markets, including SHFE warrants, fell 6,000 mt over the weekend to stand at 1.83 million mt.
–Russian aluminium and copper exports rose in the first five months of 2018, while nickel exports declined, official customs data showed.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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