Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 5.29% to settled at 358 while prices remain unchanged 0 rupees.
Now MCX Aluminium is getting support at 226.2 and below same could see a test of 224.3 levels, and resistance is now likely to be seen at 229.9, a move above could see prices testing 231.7.
Aluminium yesterday settled remain flat at 227.9 as the social inventories of aluminium and aluminium billet have been on the rise due to massive suspension of production across the downstream sector.
An alumina refinery in Jamaica that was damaged by fire and shut down in August is not expected to be back at 100% production for another year, until the end of September 2022.
On the fundamentals, the power shortage and energy consumption control has brought down the supply of aluminium. And the production costs of aluminium kept climbing amid rising prices of alumina and thermal coal.
Meanwhile, the National Food and Strategic Reserves Administration has decided to release the fourth batch of national reserves with an amount of 70,000 mt of aluminium, forming resistance against aluminium prices.
The People’s Bank of China injected a total CNY 100 billion of 14-day reverse repos at an interest rate of 2.35 percent on September 29th 2021, the same as in the previous day, and marking the ninth straight day of cash injections in the financial system. The central bank reinforced the moves aim to maintain liquidity in the banking system ahead of the National Day holidays.
Trading Ideas:
–Aluminium trading range for the day is 224.3-231.7.
–Aluminium settled flat as the social inventories of aluminium and aluminium billet have been on the rise.
–An alumina refinery in Jamaica that was damaged by fire and shut down in August is not expected to be back at 100% production for another year.
–National Food and Strategic Reserves Administration has decided to release the fourth batch of national reserves with an amount of 70,000 mt of aluminium.
Courtesy: Kedia Commodities
Source: Comodity Online
