Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 14.88% to settled at 1505 while prices down 0.75 rupees.
Now MCX Aluminium is getting support at 132 and below same could see a test of 131.6 levels, and resistance is now likely to be seen at 133.1, a move above could see prices testing 133.8.
Aluminium on MCX settled down 0.56% at 132.5 markets looked ahead to the British election and the next potential round of U.S. tariffs on Chinese imports. The US dollar rallied from one-month lows, as investors digested a better-than-expected US nonfarm payrolls report.
Exports of unwrought aluminium, including primary metal, alloy and semi-finished products, stood at 452,000 tonnes in November, according to customs data. This is up 4.9% from October's exports of 431,000 tonnes, and a 14.7% fall year-on-year.
January-November exports from China, the world's top aluminium producer, were at 5.25 million tonnes, down 0.3% from a year ago.Nearby tightness remained in aluminium, flagging a shortage of immediately available material as the cost of carrying the metal for tomorrow and the next day hit $2 on Friday, pointing to more deliveries into LME stocks ahead. Social inventories of primary aluminium in China continued to fall over the weekend, showed data.
Stocks across eight consumption areas in China, including SHFE warrants, decreased by 33,000 mt from last Thursday December 5 to 672,000 mt as of Monday December 9. China’s exports in November shrank for the fourth consecutive month, customs data showed. China’s overseas shipments dropped 1.1% year on year in November, below the 1.0% expansion. Imports, on the other hand, rose 0.3% as compared to a year earlier, exceeding projections for a 1.8% decline.
--Aluminium trading range for the day is 131.6-133.8.
--Aluminium dropped markets looked ahead to the British election and the next potential round of U.S. tariffs on Chinese imports.
--Exports of unwrought aluminium stood at 452,000 tonnes in November, according to customs data.
--January-November exports from China, the world's top aluminium producer, were down 0.3% from a year ago at 5.25 million tonnes.
Courtesy: Kedia Commodities