MCX Zinc likely to trade in a range between 192.5-203.5
MCX Copper may trade in a range between 452.1-471.9
MCX Nickel may trade between 896.3-982.1 levels
MCX Mentha Oil likely to trade in a range of 1639.2-1677.6
Short covering seen in MCX Cotton
Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 35.13% to settled at 4447.
Now MCX Aluminium is getting support at 157.7 and below same could see a test of 149.9 level, And resistance is now likely to be seen at 169.6, a move above could see prices testing 173.7.
Aluminium on MCX settled up 8.07% at 165.45 after Norsk Hydro said it will halt production at its Alunorte alumina refinery in Brazil, fanning worries over tighter supply of the raw material. London Metal Exchange (LME) on-warrant aluminium stocks, metal not earmarked for delivery, are at their lowest since January 2006 at 608,050 tonnes — a far cry from the peaks hit over 2010-14.
There is a strong suspicion that erosion of LME inventory is as much to do with the exchange’s warehousing function as with market reality. When LME aluminium stocks exploded in 2009, it was partly down to the immediate impact of slumping demand but also to the squeeze on credit, which forced those holding off-market inventory to deliver to the market of last resort.
And when those infamous load-out queues emerged at Detroit and the Dutch port of Vlissingen over the course of 2012-2014, the metal wasn’t going to a consumer but back to cheaper off-market storage.
Physical premiums are still unwinding from their post-sanctions highs. Fourth-quarter shipments to Japan, a benchmark for the Asian region, has just settled at $103 a tonne over LME cash metal, down from $132 in the third quarter.
Rather than signalling a squeeze on aluminium, the scale of decline in LME inventory may be signalling a squeeze on its warehousing companies. China’s aluminium processing industry returned into expansion territory in September, bolstered by improvement in primary alloy, secondary alloy, foil, plate/sheet and strip, construction extrusions sectors.
Trading Ideas:
–Aluminium trading range for the day is 149.9-173.7.
–Aluminium prices rose after Norsk Hydro said it will halt production at its Alunorte alumina refinery in Brazil, fanning worries over tighter supply of the raw material.
–LME on-warrant aluminium stocks, are at their lowest since January 2006 at 608,050 tonnes.
–Physical premiums are still unwinding from their post-sanctions highs.
Courtesy: Kedia Commodities
Source: Commodityonline.com
