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Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 2.75% to settled at 3115 while prices down 0.1 rupees.
Now MCX Aluminium is getting support at 140.9 and below same could see a test of 139.8 level, And resistance is now likely to be seen at 143, a move above could see prices testing 144.
Aluminium settled flat as dollar came of highs on news that Beijing and Washington will resume trade talks later this month. Primary aluminium inventories across major consumption areas in China continued to decrease in the week with limited arrivals.
Stocks across eight consumption areas, including SHFE warrants, shrank some 14,000 mt from last Thursday and some 5,000 mt from Monday to stand at 1.761 million mt. Aluminum Corp of China Ltd, known as Chalco, boosted primary aluminium production by 24.1 percent year-on-year in H1 to 2.06 million tonnes.
China’s primary aluminium production climbed 12 percent in July from the same month a year earlier, equalling its monthly record, as new smelters took output back toward the level that preceded capacity closures in mid-2017.
The world’s biggest aluminium producer churned out 2.93 million tonnes of the metal last month, according to National Bureau of Statistics data released. That matched the previous high, set in June 2017, and was up 3.4 percent month-on-month.
On a daily basis, China produced 94,500 tonnes of primary aluminium last month, according to calculations based on the data. Last year, China’s aluminium output fell by 8.4 percent from June to July after the closure of 3.2 million tonnes per year of illegal smelting capacity in Shandong province. It fell further amid winter smog pollution curbs imposed on industrial manufacturing plants, before bouncing back in December as new smelters opened.
Trading Ideas:
–Aluminium trading range for the day is 139.8-144.
–Aluminium settled flat as dollar came of highs on news that Beijing and Washington will resume trade talks later this month.
–Primary aluminium inventories across major consumption areas in China continued to decrease in the week with limited arrivals.
–China’s primary aluminium production climbed 12 percent in July from the same month a year earlier, equalling its monthly record, as new smelters took output back.
Courtesy: Kedia Commodities
Source: Commodityonline.com
