Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 2.41% to settled at 2080 while prices up 1.85 rupees.
Now MCX Aluminium is getting support at 226.1 and below same could see a test of 223.6 levels, and resistance is now likely to be seen at 230.6, a move above could see prices testing 232.6.
Aluminium yesterday settled up by 0.82% at 228.55 on expectations that accelerating production cuts in China to control emissions will create large shortages this year.
High prices have also been bolstered by concerns about disruptions in Guinea, which has large reserves of bauxite used to make aluminium feedstock alumina. China’s aluminium imports in August fell 20.7% from the previous month, data from the General Administration of Customs showed, hitting their lowest since May.
Arrivals of unwrought aluminium and products – which include primary metal and unwrought, alloyed aluminium were 247,547 tonnes, down from 312,086 tonnes in July and down 42.4% from a year earlier.
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. Estimated primary Chinese production fell to 3.299 million tonnes in August from 3.327 million tonnes in July, it added.
A Japanese aluminium buyer has agreed to pay a global producer a premium of $220 per tonne over the benchmark price for shipments in October to December, up 19% from the current quarter to reflect higher overseas premiums.
Trading Ideas:
–Aluminium trading range for the day is 223.6-232.6.
–Aluminium gains on expectations that accelerating production cuts in China to control emissions will create large shortages this year.
–Global aluminium output drops in August – IAI.
–China Aug aluminium imports fall 20.7% from prior month.
Courtesy: Kedia Commodities
Source: Comodity Online
