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Technically Aluminium market is under short covering as market has witnessed drop in open interest by 2.88% to settled at 2896 while prices up 0.2 rupees.
Now MCX Aluminium is getting support at 143.9 and below same could see a test of 142.9 levels and resistance is now likely to be seen at 146, a move above could see prices testing 147.1.
Aluminium on MCX settled up 0.14% at 144.75 tracking firmness in LME prices supported by weakness in dollar. Primary aluminium inventories across major consumption areas in China registered a faster decline on the week, with limited arrivals and downstream purchases.
Stocks across eight consumption areas, including SHFE warrants, shrank some 23,000 mt from Thursday August 16 to stand at 1.74 million mt, data showed. The decline was faster compared to the week-on-week drop of 14,000 mt last Thursday.
This week, limited railroad cars available in Xinjiang affected delivery of aluminium ingots from the area. Downstream processing plants also stepped up purchases as aluminium prices fell. The city government of Linyi, Shandong province, required local secondary aluminium producers to suspend or cut production for about three weeks.
This came after the provincial environmental inspection team settled into the city. The Shandong government began a fresh round of environmental probes across the province last week. Inspectors settled in Binzhou city on Tuesday August 21 and they are expected to stay for about 20 days and leave on September 9.
The Shandong government began a fresh round of environmental probes across the province last week. Inspectors settled in Binzhou city on Tuesday August 21 and they are expected to stay for about 20 days and leave on September 9. Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 210,000 for the week ended August 18, the Labor Department said.
Trading Ideas:
–Aluminium trading range for the day is 142.9-147.1.
–Aluminium prices ended with gains tracking firmness in LME prices supported by weakness in dollar.
–Primary aluminium inventories across major consumption areas in China registered a faster decline on the week, with limited arrivals and downstream purchases.
–The city government of Linyi, Shandong province, required local secondary aluminium producers to suspend or cut production for about three weeks.
Courtesy: Kedia Commodities
Source: Commodityonline.com
