Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 19.36% to settled at 3526 while prices down 0.65 rupees.
Now MCX Aluminium is getting support at 133.9 and below same could see a test of 133.4 levels and resistance is now likely to be seen at 134.9, a move above could see prices testing 135.4.
Aluminium on MCX settled down 0.48% at 134.40 tracking weakness from LME Aluminium prices which fell towards the near-three-month lows hit last week on expectations that the pace of supply cuts from top producer China would slow and demand growth weaken.
Benchmark aluminium on the London Metal Exchange ended down 0.2 percent at $2,082 a tonne. Last week the price fell to $2,068.50, its lowest since Aug. 25. While Binzhou, home to top global aluminium maker China Hongqiao Group, last month ordered 2.57 million tonnes of annual smelting capacity to be closed during the coming winter, though part of that may already have been closed as part of a clampdown on illegal smelting.
Also China’s aluminium production in October was 2.546 million tonnes, down from 2.606 million tonnes in September, data from the International Aluminium Institute (IAI) showed on Monday. While China accounts for more than half of global aluminium output estimated at about 60 million tonnes this year and more than half of global demand.
China’s economy cooled in October, with industrial output, fixed-asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.
Market sign of weaker Chinese demand can be seen in aluminium stocks monitored by the Shanghai Futures Exchange, which last week rose by more than 24,000 tonnes to above 691,000 tonnes. Last December stocks were about 72,000 tonnes.
--Aluminium trading range for the day is 133.4-135.4.
--Aluminium prices fell dragged down by signs of robust global production.
-- International Aluminum Institute released data, saying global daily average output of primary aluminium in October (China excluded) increased to 70,300 tonnes.
--China output of primary aluminium in October reaches 2.54 million tonnes. in September the figure is 2.606 million tonnes.
Courtesy: Kedia Commodities