Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 5.08% to settled at 1633 while prices down 1.35 rupees.
Now MCX Aluminium is getting support at 229.5 and below same could see a test of 225.3 levels, and resistance is now likely to be seen at 239, a move above could see prices testing 244.3.
Aluminium yesterday settled down by 0.57% at 233.45 as rising aluminium inventories in China weighed on prices, with Shanghai stocks up for four straight weeks and social stocks in China at their highest since May 27 of 957,000 tonnes.
Prices seen pressure as a drop in coal prices in China eased concerns of supply shortage in the metal. China’s thermal coal futures slid 11%, extending losses since Tuesday when they toppled off record highs as Beijing signaled it would intervene to cool surging prices to help electricity producers out of a widespread power crunch.
Aluminium has been touted as the base metal most impacted by a widespread power curb in China, the world’s biggest producer of the metal, due to its energy intensive smelting process.
The cost of aluminum surged more than 11% in the first half of October, as the metal has been touted as the most impacted by a widespread power curb in top producer China due to its energy-intensive smelting process.
The data showed China’s aluminum output in September declined for a fifth consecutive month to the lowest monthly level since June 2020 while aluminum imports rose 2.2% from the previous month.
Trading Ideas:
–Aluminium trading range for the day is 225.3-244.3.
–Aluminium prices dropped as rising aluminium inventories in China weighed on prices.
–Prices seen pressure as a drop in coal prices in China eased concerns of supply shortage in the metal.
–Shanghai stocks up for four straight weeks and social stocks in China at their highest since May 27 of 957,000 tonnes.
Courtesy: Kedia Commodities
Source: Comodity Online