Aluminium yesterday traded with the negative node and settled -0.78% down at 108.15 as pressure had seen as LME aluminum stocks surged by over 30,000 mt overnight to above 5 million mt, damping market sentiment.
Greece failed to agree on an austerity plan, postponing the reform meeting until today as it seeks financial aid. A rebound in worries towards Greek defaults weighed on the euro and induced losses in commodities.
LME aluminum positions dropped 4,500 lots during European trading due to profit taking by longs, dragged LME aluminum price to USD 2,209.5/mt.
Though the euro recovered losses at the tail of trading, high stocks still led to a USD 37.5/mt or 1.66% drop in LME aluminum price, which closed at USD 2,118/mt.
Cautiousness will be seen in today’s markets as Greeks vote over their austerity plan. LME aluminum is expected to move between USD 2,180-2,250/mt during today’s trading as it tests support at USD 2,200/mt.
Limited recovery will be seen in aluminum consumption and weakness in the futures market can hardly boost trader confidence.
For today's session market is looking to take support at 107.6, a break below could see a test of 107.1 and where as resistance is now likely to be seen at 109.1, a move above could see prices testing 110.
Aluminium trading range for the day is 107.08-109.98.
Aluminium traded with a negative node and settled down by 0.78% as Greece failed to agree on an austerity plan.
Greece failed to agree on an austerity plan, postponing the reform meeting until today as it seeks financial aid.
A rebound in worries towards Greek defaults weighed on the euro and induced losses in commodities.
Warehouse stock for Aluminium at LME was at 5019525mt that is up by 30525mt.
Courtesy: Kedia Commodities
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