Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 5.15% to settled at 3473 while prices down 2.15 rupees.
Now MCX Aluminium is getting support at 203.1 and below same could see a test of 200.6 levels, and resistance is now likely to be seen at 208.5, a move above could see prices testing 211.4.
Aluminium yesterday settled down by 1.04% at 205.4 as new bank lending in China is expected to have plunged in October from the prior month, but the yuan loans are likely to be higher than a year earlier, as the central bank treads warily on policy easing amid stagflation concerns.
Chinese banks are estimated to have issued 800 billion yuan ($125.04 billion) in net new yuan loans last month, down from 1.66 trillion yuan in September.
The market shall still watch the consumer market recovery as the power rationing eased. While the blizzard in north China may reduce the arrivals of aluminium ingot.
China produced 3.16 million mt of aluminium in October, down 2.55% on the year. The daily output averaged 102,000 mt, down 1,600 mt/day on the month.
The output totalled 32.24 million mt from January to October, an increase of 5.1% on the year. The operating capacities in Shanxi, Henan, and Guizhou declined further due to the power rationing and production restriction in the heating season.
No existing capacity was resumed, nor were there new capacities put into production in October. China’s operating aluminium capacity stood at 37.32 million mt/year in early October, while the installed capacity stood at 43.75 million mt/year.
Trading Ideas:
–Aluminium trading range for the day is 200.6-211.4.
–Aluminium prices dropped as new bank lending in China is expected to have plunged in October from the prior month
–The market shall still watch the consumer market recovery as the power rationing eased.
–While the blizzard in north China may reduce the arrivals of aluminium ingot.
Courtesy: Kedia Commodities
Source: Comodity Online
