Aluminium yesterday traded with the positive node and settled 0.05% up at 109.95. Some Chinese aluminum smelters in mountainous southwestern regions will partly closed because of power shortages caused by a worsening drought.
Aluminium stocks held at three major Japanese ports at the end of August stood at their highest level since May 2009, boosted by the arrival of delayed shipments from July. The August aluminium stocks were the largest since 243,300 tonnes in May 2009.
Aluminum inventories fell for a 26th week, losing 6,449 tons to 111,350 tons, the lowest level since February 2008, according to a survey of 20 warehouses in Shanghai, Guangdong, Jiangsu and Zhejiang provinces. Some support had been seen from the LME stock also which came down by -5050mt, the total stock at LME is now at 4604700mt.
For today's session market is looking to take support at 109.7, a break below could see a test of 109.4 and where as resistance is now likely to be seen at 110.2, a move above could see prices testing 110.5.
Trading Ideas:
Aluminium trading range is 109.4-110.5.
Chinese aluminum smelters in mountainous southwestern regions will partly closed because of power shortages
Japan Aug aluminium stocks hit over 2-year high
Aluminium weekly stocks at Shanghai exchange came down by 6449 tonnes
Courtesy: Kedia Commodities
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