Mentha Oil market under short covering; Support seen at 1539.8
MCX Nickel may trade between 897.3-943.3 levels
MCX Zinc likely to trade between 170.8-185.4 levels
Copper market under fresh selling; Support seen at 408.8
Natural Gas likely to trade between 185-194.8 levels
Aluminium on MCX settled down 0.68% at 138.30 as worries over slower growth of China’s economy and uncertainties over trade war continued to depress market sentiment. While LME aluminium tested support at $2,000/mt twice and touched a low of $2,001.5/mt while base metals weakened across the board.
It closed at $2,006/mt with LME inventory up 5,100 mt to 1,203,975 mt. While LME aluminium tumbled as the US dollar gained, the contract was less affected as investors mostly kept on the sidelines.
Yesterday the LME sell-off that followed came as a China foreign ministry spokeswoman described as “shocking” comments from U.S. economic adviser Larry Kudlow that Chinese President Xi Jinping was “holding up” a deal to resolve a trade row between the two countries. Last night the US dollar index fell from one year’s high and closed at 95.09, slightly up from Wednesday.
Base metals dipped across the board on ongoing trade conflicts between China and the US. LME zinc and copper lost over 2%, with copper tumbling to the lowest level in a year, at $5,988/mt. Nickel slumped nearly 2%, lead closed over 1.6% lower, and aluminium dropped nearly 1.5%.
SHFE lead fell over 1%, and copper declined nearly 1%. Other base metals edged down. From data side the US initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended July 14, the lowest reading since early December 1969. Now a Day ahead Light economic data are expected today as the market watches out for further movement in metals prices.
–Aluminium trading range for the day is 136.7-140.7.
–Aluminium dropped as fund selling accelerated due to worries about demand from the trade tussle between the United States and top consumer China.
–China June alumina output +6.3 pct y/y at 5.86 mln tonnes, the National Bureau of Statistics said.
–China’s primary aluminium social inventory extended its weekend gains as consumption weakened on a seasonal lull and as deliveries arrived at the warehouses.
Courtesy: Kedia Commodities