Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 15.79% to settled at 2302 while prices down 2.65 rupees.
Now MCX Aluminium is getting support at 208 and below same could see a test of 206 levels, and resistance is now likely to be seen at 212.6, a move above could see prices testing 215.2.
Aluminium yesterday settled down by 1.25% at 209.85 hit by worries over the potential economic impact of the Omicron coronavirus variant, but low inventories cushioned losses.
Heavily mutated Omicron is rapidly becoming the dominant variant of the coronavirus in South Africa less than four weeks after it was first detected there, while the United States became the latest country to identify an Omicron case within its borders.
LME inventories of the metal dropping to 893,775 tonnes, the lowest since September 2007 and down 55% from March. Most metals recently left warehouses in Malaysia, exchange data showed.
The premium of LME cash aluminium over the three-month contract rose to $16.30 a tonne, indicating tightness in nearby supplies. On-warrant aluminium inventories in LME-registered warehouses rose by 16% to 677,225 tonnes, data showed.
The aluminium supply side was relatively stable with no news heard regarding reduced or resumed production. On the demand side, the downstream operating rates rallied recently amid loosening power rationing.
But the market shall closely watch whether the air pollution control measures in the heating season and during Winter Olympics will bring down the operating rates again.
The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to tightening labor market conditions, while layoffs tumbled to a 28-1/2-year low in November.
–Aluminium trading range for the day is 206-215.2.
–Aluminium prices eased hit by worries over the potential economic impact of the Omicron coronavirus variant, but low inventories cushioned losses.
–The aluminium supply side was relatively stable with no news heard regarding reduced or resumed production.
–On-warrant aluminium inventories in LME-registered warehouses rose by 16% to 677,225 tonnes, data showed.
Courtesy: Kedia Commodities
Source: Comodity Online