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Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 26.31% to settled at 3277 while prices down 4.25 rupees.
Now MCX Aluminium is getting support at 158.4 and below same could see a test of 155.5 level, And resistance is now likely to be seen at 166, a move above could see prices testing 170.7.
Aluminium on MCX settled down 2.57% at 161.2 on profit booking following robust U.S. economic data and after Federal Reserve Chairman Jerome Powell said the economy can expand for “quite some time.”
Norsk Hydro said that it would halt production indefinitely and lay off 4,700 people at Brazil’s Alunorte refinery, which has been operating at half capacity since March due to an environmental dispute.
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Norsk Hydro’s decision also triggered a shutdown of its Paragominas bauxite mine, which supplies Alunorte, and will lead to the imminent closure of the nearby Albras aluminium smelter. Its partial shutdown earlier this year drove up market prices.
The original output cut occurred after the company admitted making unlicensed emissions of untreated water during heavy rains. The decision to halt production was taken as the refinery’s waste deposit area is close to full capacity and its conflict with authorities is preventing Hydro from using a newly created residue facility, the company said.
Aluminium inventories in warehouses approved by the London Metal Exchange fell below 1 million tonnes for the first time since May 2008, LME data showed.
Aluminium stocks dropped 6,850 tonnes to 999,925 tonnes, according to the data, which tracks warehouse movements with a one-day lag. Healthy demand has sent LME aluminium stocks sliding in recent years after touching a record peak of 5,492,000 tonnes on Feb. 15, 2014.
Trading Ideas:
–Aluminium trading range for the day is 155.5-170.7.
–Aluminium dropped on profit booking following robust U.S. economic data and after Federal Powell said the economy can expand for “quite some time.”
–Norsk Hydro said that it would halt production indefinitely and lay off 4,700 people at Brazil’s Alunorte refinery, which has been operating at half capacity since March.
–Aluminium inventories in warehouses approved by the London Metal Exchange fell below 1 million tonnes for the first time since May 2008, LME data showed.
Courtesy: Kedia Commodities
Source: Commodityonline.com
