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Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 19.66% to settled at 3360 while prices down 1.6 rupees.
Now MCX Aluminium is getting support at 137.8 and below same could see a test of 137.2 level, And resistance is now likely to be seen at 139.4, a move above could see prices testing 140.4.
Aluminium on MCX settled down 1.14% at 138.35 as reports about new capacity starts at domestic smelters weighed. Poor supply and demand in the aluminium market in China is likely to continue in December.
Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, decreased by 2.67% to stand at 1.386 million mt while stocks of 6063 aluminium billet across five major consumptions.
Related Post
With weak supply and demand, the primary aluminium inventory destocking cycle in China is likely to pause in January 2019. Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, decreased by 2.45% to stand at 1.352 million mt, and stocks of 6063 aluminium billet across five major consumption areas dipped 2.56% to 117,900 mt, data showed.
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China’s banks extended more new loans than expected in November after a sharp drop the previous month, in a sign that recent government pressure on lenders to help struggling smaller firms may be starting to bear fruit. Chinese banks extended 1.25 trillion yuan ($182 billion) in new yuan loans in November, up from 697 billion yuan in October, the People’s Bank of China (PBOC) said in a statement.
Trading Ideas:
–Aluminium trading range for the day is 137.2-140.4.
–Aluminium prices dropped as reports about new capacity starts at domestic smelters weighed.
–Poor supply and demand in the aluminium market in China is likely to continue in December.
–Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, decreased by 2.67% to stand at 1.386 million mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
