Technically Aluminium market is under short covering as market has witnessed drop in open interest by -2.25% to settled at 2525 while prices up 4.7 rupees.
Now MCX Aluminium is getting support at 238.4 and below same could see a test of 233.9 levels, and resistance is now likely to be seen at 246.5, a move above could see prices testing 250.1.
Aluminium yesterday settled up by 1.97% at 242.85 due to increases in costs of energy and raw materials used to make the metal and output cuts by the biggest producer, China.
China’s production, already curbed by a government anti-pollution drive, has been further hit by power shortages gripping the country.Chinese energy futures prices have surged to multi-year and record highs, with India also facing power outages and soaring energy costs, forcing a Dutch aluminium producer and a Spanish steel plant to halt production.
Macquarie estimates supply disruption will reduce Chinese aluminium output by 1.5 million tonnes this year, leading to a 1 million tonne deficit in the roughly 65 million tonne global market.
But demand in China is falling, stockpiles are plentiful and prices are likely to fall towards $2,200 in 2022.Bottlenecks in transportation and energy supply are pushing up costs for global miners but this should be temporary, the head of Antofagasta Minerals said.
The city of Harbin announced measures to support property developers and their projects, reassuring investors fearing a damaging debt crisis in China’s construction sector.China released 150,000 tonnes of industrial metals from its state reserves in the fourth round of sales this year as it continues a campaign to ease supply tightness and tame high commodity prices.
–Aluminium trading range for the day is 233.9-250.1.
–Aluminium prices rose due to increases in costs of energy and raw materials used to make the metal and output cuts by China.
–China’s production, already curbed by a government anti-pollution drive, has been further hit by power shortages gripping the country.
–Russian aluminium exports rose in the first eight months of 2021.
Courtesy: Kedia Commodities
Source: Comodity Online