Short covering seen in MCX Zinc
MCX Gold may trade in a range between 30423-30805
MCX Mentha Oil under short covering
NCDEX Castor under fresh buying; Support seen at 4371
MCX Cardamom under fresh buying; Resistance seen at 1060.7
Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 0.35% to settled at 3199 while prices up 0.15 rupees.
Now MCX Aluminium is getting support at 143.3 and below same could see a test of 142.6 level, And resistance is now likely to be seen at 144.5, a move above could see prices testing 145.
Aluminium on MCX settled up 0.1% at 143.85 as Chalco, is to cut alumina output on some of its production lines in the northern Chinese province of Shanxi. The state-run Chinese aluminium producer said that about 770,000 tonnes of annual alumina production capacity at its Shanxi New Material unit would be affected by “flexible” output arrangements, a euphemism for production cuts, with effect from Thursday.
A crackdown on illegal mining in Shanxi, China’s second-biggest alumina province by production, led to tight supply in the region. U.S. tariffs on $34 billion in Chinese imports took effect as a deadline passed, and with Beijing having vowed to respond immediately in kind, the world’s two biggest economies took a high-stakes turn towards all-out trade conflict.
China’s commerce ministry said in a statement shortly after the deadline passed that it was forced to retaliate, meaning $34 billion worth of imported U.S. goods including autos and agricultural products also faced 25 percent tariffs.
China produced 3.02 million mt of primary aluminium in June, down 2.3% from a year ago. For the first half of 2018, output stood at 17.81 million mt, down 2.7% year on year. The decline in China’s social inventory of primary aluminium continued to slow over the week ended July 5 as the slowdown in consumption suppressed purchasing interest downstream.
As of Thursday July 5, inventories of primary aluminium, including SHFE warrants, across eight major consumption areas shrank some 1,000 mt from Monday to stand at 1.83 million mt, after they lost 9,000 mt over the weekend.
Trading Ideas:
–Aluminium trading range for the day is 142.6-145.
–Aluminium settled flat as Chinese alumina refiners cut production by about 770,000 tonnes.
–China produced 3.02 million mt of primary aluminium in June, down 2.3% from a year ago.
–The decline in China’s social inventory of primary aluminium continued to slow over the week ended July 5.
Courtesy: Kedia Commodities
Source: Commodityonline.com
