Technically Aluminium market is under short covering as market has witnessed drop in open interest by 2.98% to settled at 2016 while prices up 1.1 rupees.
Now MCX Aluminium is getting support at 253.1 and below same could see a test of 250.9 levels, and resistance is now likely to be seen at 258.4, a move above could see prices testing 261.5.
Aluminium yesterday settled up by 0.43% at 255.35 as soaring energy prices intensified supply disruptions.China’s September aluminium output in September declined for a fifth consecutive month due to Chinese electricity shortages.
Smelters in China’s Qinghai province were told to reduce production to lower the power load, while in Europe aluminum producers are also facing higher electricity charges, which have shrunk profit margins, causing aluminum smelters to curtail production.Dutch producer Alde announced it will cut output by 60-70% at its Delfzijl aluminum smelter due to costly electricity bills.
Also, data from the General Administration of Customs showed China’s aluminum imports rose 2.2% from the previous month in September.Meanwhile, stocks started to rise from the China market in line with the seasonality pattern.
According to Mysteel, inventories rose by 31kt since last Thursday to the latest total of 941kt.China’s aluminium output in September declined for a fifth consecutive month, official data showed, as ongoing electricity shortages in the country led to deeper cuts in industrial production.
The world’s top producer of the metal churned out 3.08 million tonnes of primary aluminium last month, the National Bureau of Statistics said. That was down from 3.155 million tonnes in August, and also down 2.1% year-on-year.
Trading Ideas:
–Aluminium trading range for the day is 250.9-261.5.
–Aluminum rose as soaring energy prices intensified supply disruptions.
–China’s Sept aluminium output down 2.1% y/y at 3.08 mln tonnes.
–China’s September aluminium output in September declined for a fifth consecutive month due to Chinese electricity shortages.
Courtesy: Kedia Commodities
Source: Comodity Online
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