Technically MCX Aluminium is getting support at 146.2 and below same could see a test of 144.9 level, And resistance is now likely to be seen at 149.7, a move above could see prices testing 151.9.
Aluminium on MCX settled down 1.67% at 147.45 dropped tracking weakness from LME aluminium which slumped to a low of $2,042/mt amid falling base metals. LME Aluminium failed to build on its 1.3 percent rebound on Monday after a report that Russian producer Rusal could begin output cuts this month because of U.S. sanctions.
Traders are also eyeing on the update from the Aug. 8 strike by around 1,500 workers at two bauxite mines and three alumina refineries operated by AWAC, owned by Alcoa and Alumina Ltd , is the new disruptor in an already disrupted supply chain.
The walk-out is now in its second month after members of the Australian Workers Union voted late last week to reject a new proposed workplace agreement. AWAC has contingency plans to keep the operations running but conceded in a Sep. 7 statement that the action had cost around 15,000 tonnes of lost alumina output in August, a figure that is only likely to rise as the strike continues.
The supply hit would have had little impact on a near 120mt market in other years. Also Global aluminium premiums moved in differing directions in the week ended Tuesday September 11, but market participants worldwide were paying close attention to any developments concerning the US sanctions on Russian producer UC Rusal.
Last night the US dollar fell against the Canadian dollar, which was buoyed by a resumed North American Free Trade Agreement (NAFTA) trade negotiations between the two counties Tuesday. Both Canada's Foreign Minister and President Donald Trump said the talks were productive so far.
--Aluminium trading range for the day is 144.9-151.9.
--Aluminium dropped as weak downstream consumption and uncertainty over winter production cuts weighed on aluminium prices.
--China plans to raise value-added tax (VAT) rebates on exported aluminium products from September 15.
--Stocks across eight consumption areas decreased by some 31,000 mt from Thursday to stand at 1.683 million mt.
Courtesy: Kedia Commodities