Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 3.36% to settled at 2369 while prices up 2.85 rupees.
Now MCX Aluminium is getting support at 232.5 and below same could see a test of 230.4 levels, and resistance is now likely to be seen at 235.8, a move above could see prices testing 237.
Aluminium yesterday settled up by 1.23% at 234.55 on concerns over supply and as debt troubles at China Evergrande Group soothe.
Meantime, China produced 3.16 million tonnes of primary aluminum in August, 3.2% less than in July as the country suppressed smelting to reduce pollution and meet green targets.
Also, supply was further disrupted by a military coup in Guinea, the second-largest producer of bauxite and the largest supplier of China. Elsewhere, smelters in the European Union are also facing rising costs with both carbon credit and power inputs at record highs.
U.S. business activity expanded at its slowest pace in a year in September amid relentless supply constraints and peaking demand, in line with expectations for a sharp slowdown in economic growth in the third quarter.
Data firm IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 54.5 this month. That was the lowest reading since September 2020 and followed 55.4 in August.
Global primary aluminium output dropped to 5.699 million tonnes in August from a downwardly revised 5.733 million tonnes in July, data from the International Aluminium Institute (IAI) showed. Overall, primary aluminium production in August rose 3.15% year on year, the IAI said.
Trading Ideas:
–Aluminium trading range for the day is 230.4-237.
–Aluminum prices rose on concerns over supply and as debt troubles at China Evergrande Group soothe.
–China produced 3.16 million tonnes of primary aluminum in August, 3.2% less than in July.
–Smelters in the European Union are also facing rising costs with both carbon credit and power inputs at record highs.
Courtesy: Kedia Commodities
Source: Comodity Online
