Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 1.11% to settled at 3085 while prices up 0.45 rupees.
Now MCX Aluminium is getting support at 136.7 and below same could see a test of 136 level, And resistance is now likely to be seen at 137.9, a move above could see prices testing 138.4.
Aluminium on MCX settled up 0.33% at 137.40 on fresh buying tracking gains from other basemetals while Aluminium prices on the London Metal Exchange have retreated from morning highs after a significant delivery into LME-listed warehouses in Asia caused on-warrant stock to surge by 18%.
The three-month price was trading at a high of $2,151 per tonne – a $27 per tonne increase compared to Monday’s close price – before warehouse stock data was released. Some 166225 tonnes were delivered in this morning, 99% of which entered Port Klang.
This follows 22,175 tonnes on Monday and 41,650 tonnes on Friday February 9. The three-month price is now up just $9 compared to yesterday’s close price. The aluminium price will continue retreat over the next few hours as people take a step back after the stock data.
No doubt this has to weaken prices, as per market player. The increase in the aluminium deliveries in Asia is because of the backwardation, which has resulted in pressure to liquidate.
With the LME and SHFE aluminium stocks both increasing, there could be pressure on aluminium after Chinese New Year holidays. Also Most of the complex was trading in positive territory this morning, other than lead, with the softer dollar underpinning prices.
--Aluminium trading range for the day is 136-138.4.
-- Aluminium prices gained as traders were looking to cover their positions before the Lunar New Year holiday.
--China’s social inventory of refined aluminium hit a record high of 1.81 million mt as of February 12, according to data.
--China produced 5.71 million mt of alumina in January, up 2.3% from January 2017, data showed.
Courtesy: Kedia Commodities