Technically Aluminium market is under short covering as market has witnessed drop in open interest by 9.93% to settled at 1995 while prices up 1.05 rupees.
Now MCX Aluminium is getting support at 244.1 and below same could see a test of 242.1 levels, and resistance is now likely to be seen at 248.4, a move above could see prices testing 250.7.
Aluminium yesterday settled up by 0.43% at 245.95 amid supply shortage worries due to the power curb.
China Hongqiao Group, the world’s top non-state aluminium maker, is postponing a plan to relocate aluminium capacity to Yunnan province due to energy restrictions imposed by the provincial government, its chairman said.
Hongqiao planned to move 2 million tonnes of capacity to Wenshan prefecture and 1 million tonnes to Honghe prefecture in Yunnan province nearly half of its 6.46-million-tonne licensed annual primary aluminium capacity for easier access to hydropower, a cleaner power source than coal.
Yunnan told aluminium smelters using its hydropower to keep average monthly output for September-December at August volumes or lower, as the province struggled from power shortages that have also spiralled across China and disrupted several sectors.
Aldel is halting production of primary aluminium due to the current high electricity prices, the Dutch firm’s chief executive said.China’s alumina market will likely see an oversupply of 1.01 million tonnes next year on a slew of new investments and record prices, research house Antaike and industry experts said
Chinese supply, including imports, will likely rise 2.6% year on year in 2022 to 80.3 million tonnes, while demand for alumina, used to make aluminium, is seen at 79.29 million tonnes.
–Aluminium trading range for the day is 242.1-250.7.
–Aluminium prices rose amid supply shortage worries due to the power curb.
–Hongqiao to postpone aluminium capacity move to Yunnan due to power curbs.
–Dutch aluminium maker Aldel to halt output due to power price.
Courtesy: Kedia Commodities
Source: Comodity Online