Mentha Oil market under fresh selling; Support seen at 1552.7
Nickel market under long liquidation; Support seen at 937.1
MCX Zinc likely to trade between 176.5-182.9 levels
Copper market under fresh selling; Support seen at 422.6
MCX Natural Gas expected to trade in a range between 189.7-194.3
Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 1.16% to settled at 2474 while prices down 0.7 rupees.
Now MCX Aluminium is getting support at 139.8 and below same could see a test of 139.2 levels and resistance is now likely to be seen at 141.5, a move above could see prices testing 142.6.
Aluminium prices remained under pressure amid lingering concerns over the Sino-U.S. trade dispute. China’s growth outlook remains strong and this is an opportunity to accelerate re-balancing, International Monetary Fund staff said after a regular consultation with the Chinese government.
China’s inventory of primary aluminium across eight major markets, including SHFE warrants, extended its decline for the week. Inventory lost 28,000 mt from last Thursday to stand at 1.8 million, data showed.
Limited arrivals from smelters accounted for the drop. Inventory of aluminium billet in China rose further over the week as consumption stayed sluggish amid a low season.
This marked a fourth consecutive week of increase. Inventory of 6063 aluminium billet across five major consumption areas increased by 8,600 mt from last Thursday to stand at 79,400 mt. China exported 118,000 mt of alumina last month, surpassing May’s export of 89,999 mt and marking the highest level since 2002, China Customs data showed.
The exports during May and June, at 208,000 mt, were in line with SMM’s expectation. In addition, export orders for alumina were heard to be signed again this month as the export window reopened. This is likely to be reflected in the export data in July to August. Separately, China imported 50,000 mt of alumina in June, bringing the net export to 68,000 mt last month.
Trading Ideas:
–Aluminium trading range for the day is 139.2-142.6.
–Aluminium gained buoyed after U.S. President Donald Trump and the European Union reached an agreement that investors hope will avert a trade war.
–The amount of cancelled aluminium inventory — rose 23,175 tonnes, mainly from Busan, taking on-warrant stocks to 939,975 tonnes.
–Japan’s aluminium industry is more concerned over possible U.S. import tariffs on automobiles that could impact a wider range of the country’s industries.
Courtesy: Kedia Commodities
Source: Commodityonline.com
