Technically Aluminium market is under short covering as market has witnessed drop in open interest by 24.27% to settled at 1763 while prices up 0.3 rupees.
Now MCX Aluminium is getting support at 209.4 and below same could see a test of 206.3 levels, and resistance is now likely to be seen at 214.6, a move above could see prices testing 216.7.
Aluminium settled at 212.35 after prices remained in range as market’s worries over possible reductions in supply were eased after Yunnan Aluminium announced that it has resumed its capacity which was suspended unexpectedly last week.
However, the supply is still unlikely to see any significant increases, hence the market was dominated by the consumption side.China’s aluminium imports in October rose by 17.4% from the previous month to their highest since July, data from the General Administration of Customs showed.
Arrivals of unwrought aluminium and products which include primary metal and unwrought, alloyed aluminium totalled 297,043 tonnes last month, up from 252,921 tonnes in September and up 15.8% year-on-year Imports in the first 10 months of 2021 were up 14.4% from a year earlier at 2.57 million tonnes.
On course to set an annual record as restrictions on power usage by domestic smelters keep demand for overseas metal strong.Global primary aluminium output rose to 5.689 million tonnes in October, up 1.2% year on year, data from the International Aluminium Institute (IAI) showed.Estimated Chinese production was 3.270 million tonnes in October, up from 3,250 million tonnes in the same month last year, the IAI said.
Trading Ideas:
–Aluminium trading range for the day is 206.3-216.7.
–Aluminium remained in range as market’s worries over possible reductions in supply were eased after Yunnan Aluminium has resumed its capacity.
–China October aluminium imports rise 17.4% from prior month.
–Global primary aluminium output rises to 5.689 mln T in Oct – IAI.
Courtesy: Kedia Commodities
Source: Comodity Online
