Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 7.37% to settled at 2768 while prices down 4.05 rupees.
Now MCX Aluminium is getting support at 208.4 and below same could see a test of 206.6 levels, and resistance is now likely to be seen at 213.2, a move above could see prices testing 216.2.
Aluminium yesterday settled down by 1.89% at 210.05 as China’s aluminium output rose in October from the prior month, official data showed ending a run of five straight monthly declines, although average daily production fell as smelters faced continued restrictions due to power shortages.
The world’s top producer of the metal churned out 3.13 million tonnes of primary aluminium last month, the National Bureau of Statistics (NBS) said. That was up from 3.075 million tonnes in September but down 1.8% year-on-year.
The United States said it would open talks with Japan that could lead to an easing of tariffs on steel and aluminum imports, a longstanding irritant in trade relations between the two allies.
Data showed that China’s social inventories of aluminium across eight consumption areas dropped 6,000 mt on the week to 1.007 million mt as of November 11, mainly contributed by Nanhai, Shanghai and Gongyi. The inventory in Wuxi continued to rise.
And how the blizzard in north China will impact the transportation is worth constant attention. The stocks of aluminium billet in five major consumption areas dropped 26,100 mt to 112,200 mt on November 11 from a week ago, a decrease of 18.87%. And the inventory has been falling for four straight weeks.
Trading Ideas:
–Aluminium trading range for the day is 206.6-216.2.
–Aluminium prices dropped as China’s aluminium output rose in October from the prior month.
–The United States said it would open talks with Japan that could lead to an easing of tariffs on steel and aluminum imports.
–Data showed that China’s social inventories of aluminium across eight consumption areas dropped 6,000 mt.
Courtesy: Kedia Commodities
Source: Comodity Online
