Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 0.46% to settled at 2571 while prices down 0.45 rupees.
Now MCX Aluminium is getting support at 216.8 and below same could see a test of 212.3 levels, and resistance is now likely to be seen at 224.3, a move above could see prices testing 227.3.
Aluminium yesterday settled down by 0.2% at 221.3 as the SHFE aluminium inventory is growing slowly, but the downstream purchase still cannot be described as optimistic.
In China, according to the cost survey disclosed by the National Development and Reform Commission (NDRC), the production costs of coal were significantly lower than the spot prices of coal, and the market was heavily smacked by the news, which led to a steep decline in thermal coal prices.
In terms of supply and demand, places like Shanxi and Guangxi have issued the production curtailment notice in autumn and winter, while many other places including Hebei and Shandong released warnings against the heavy air pollution.
The in-plant inventory of coke in 247 steel mills declined, while the overall inventory has been stable amid weak supply and demand. China’s central bank injected 200 billion yuan ($31.29 billion) through seven-day reverse repurchase agreements into the banking system, bringing the weekly net cash injection to the highest in 21 months.
The People’s Bank of China (PBOC) said its website said the move was to “maintain stability in month-end liquidity conditions.” For the week, the PBOC has net injected 680 billion yuan through reverse repos, biggest weekly cash offering since January 2020.
Trading Ideas:
–Aluminium trading range for the day is 212.3-227.3.
–Aluminium dropped as the SHFE aluminium inventory is growing slowly, but the downstream purchase still cannot be described as optimistic.
–Data showed that China’s social inventories of aluminium across eight consumption areas rose 25,000 mt on the week to 982,000 mt.
–China c.bank makes biggest weekly short-term cash injection in 21 months.
Courtesy: Kedia Commodities
Source: Comodity Online
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