Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 5.01% to settled at 1915 while prices down 6.35 rupees.
Now MCX Aluminium is getting support at 246 and below same could see a test of 242.8 levels, and resistance is now likely to be seen at 255, a move above could see prices testing 260.8.
Aluminium yesterday settled down by 2.49% at 249 as the downstream consumption has been suppressed by the power rationing. And the domestic inventory of aluminium has been on the rise.
Production at U.S. factories unexpectedly fell in September as motor vehicle output slumped amid an ongoing global shortage of semiconductors. China’s September aluminium output in September declined for a fifth consecutive month due to Chinese electricity shortages.
Smelters in China’s Qinghai province were told to reduce production to lower the power load, while in Europe aluminum producers are also facing higher electricity charges, which have shrunk profit margins, causing aluminum smelters to curtail production.
Dutch producer Alde announced it will cut output by 60-70% at its Delfzijl aluminum smelter due to costly electricity bills. Also, data from the General Administration of Customs showed China’s aluminum imports rose 2.2% from the previous month in September.
Meanwhile, stocks started to rise from the China market in line with the seasonality pattern. According to Mysteel, inventories rose by 31kt since last Thursday to the latest total of 941kt.
China’s aluminium output in September declined for a fifth consecutive month, official data showed, as ongoing electricity shortages in the country led to deeper cuts in industrial production.The world’s top producer of the metal churned out 3.08 million tonnes of primary aluminium last month, the National Bureau of Statistics said.
Trading Ideas:
–Aluminium trading range for the day is 242.8-260.8.
–Aluminum dropped as the downstream consumption has been suppressed by the power rationing and the domestic inventory of aluminium has been on the rise.
–China’s Sept aluminium output down 2.1% y/y at 3.08 mln tonnes.
–China’s September aluminium output in September declined for a fifth consecutive month due to Chinese electricity shortages.
Courtesy: Kedia Commodities
Source: Comodity Online
