Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 10.02% to settled at 1634 while prices down 0.45 rupees.
Now MCX Aluminium is getting support at 130.1 and below same could see a test of 129.8 levels, and resistance is now likely to be seen at 130.7, a move above could see prices testing 131.
Aluminium on MCX settled down 0.34% at 130.45 as aluminium stocks across LME-approved warehouses extended their increase to 1.17 million mt. China’s rate cuts, together with falling inventories and robust demand, buoyed aluminium, but growing supply remains a major headwind in the longer term.
Uncertainty around trade also grew after the Senate passed a bill supporting Hong Kong protesters. This led China to accuse the US of interfering in domestic affairs.Federal Reserve officials generally saw little need for further rate cuts unless economic conditions change significantly, according to minutes. Social inventories of primary aluminium in China extended their decline by a much larger margin this week, as stocks in Nanhai and Gongyi fell sharply.
Data showed that stocks across eight consumption areas in China, including SHFE warrants, decreased by 35,000 mt from a week ago to 799,000 mt as of Thursday November 21, after a decline of 19,000 mt in the previous week. Inventories of aluminium billet in China declined for the sixth straight week as of November 21, with stocks in both east and south China shrinking. Data showed that stocks of 6063 aluminium billet across five major consumption areas in China fell 12,100 mt from November 14 to stand at 86,700 mt as of Thursday November 21, after the stocks dipping 13,500 mt in the previous week.
--Aluminium trading range for the day is 129.8-131.
--Aluminium dropped as aluminium stocks across LME-approved warehouses extended their increase to 1.17 million mt.
--China’s rate cuts, together with falling inventories and robust demand, buoyed aluminium, but growing supply remains a major headwind in the longer term.
--Global primary aluminium output rose to 5.392 million tonnes in October from revised 5.222 million tonnes in September, data from the IAI showed.
Courtesy: Kedia Commodities