Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 3.83% to settled at 2278 while prices down 0.35 rupees.
Now MCX Aluminium is getting support at 232.1 and below same could see a test of 231 levels, and resistance is now likely to be seen at 234.3, a move above could see prices testing 235.4.
Aluminium yesterday settled down by 0.15% at 233.15 on profit booking after prices rallied boosted by strong demand and large shortages created by China imposing production curbs on high-polluting industries such as smelting to cut power use and emissions.
Prices of the metal used in the transport and packaging industries last month hit $3,000 a tonne, the highest since July 2008. A widespread power shortage in China has raised concerns of slower growth and demand as the government has focused on limiting use by energy-intensive industries to lessen the impact on households.
The premium for aluminium shipments to Japanese buyers for October to December was set at $220 a tonne, up 19% from the previous quarter, reflecting higher overseas premiums amid tight supply.
The figure is higher than the $185 per tonne paid in the July-September quarter and marks a fifth consecutive quarterly increase and the highest since the April-June quarter in 2015. But it came below the initial offers of $230-$250 made by producers.
Japan is Asia’s biggest importer of the light metal and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price set the benchmark for the region.
–Aluminium trading range for the day is 231-235.4.
–Aluminium prices dropped on profit booking after prices rallied boosted by strong demand and large shortages.
–A widespread power shortage in China has raised concerns of slower growth and demand.
–Japan Q4 aluminium premium climbs by 19% to $220/T.
Courtesy: Kedia Commodities
Source: Comodity Online