MCX Aluminium may trade between 132-134.4 levels
Commodity Online | November 14 2019
UPDATED 10:10:51 IST

MCX Mentha Oil under fresh buying; Resistance seen at 1307.9

MCX Aluminium may trade between 131.9-134.5 levels

MCX Nickel likely to move in a range of 997-1036.8

MCX Zinc under short covering; Resistance seen at 183.8

MCX Copper may trade between 437.4-445.2 levels

Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 2.53% to settled at 2119 while prices down 0.45 rupees.

Now MCX Aluminium is getting support at 132.6 and below same could see a test of 132 levels, and resistance is now likely to be seen at 133.8, a move above could see prices testing 134.4. 

Aluminium on MCX settled down 0.34% at 133 as decreased appetite for risk assets amid mixed signals on a US-China trade deal. Better-than-expected Germany economic sentiment data failed to significantly boost the outlook for global growth.

China's aluminium consumption is seen falling for the first time in 30 years this year as both domestic demand and exports decline. Consumption of primary aluminium in China, the world's top producer, is estimated at 36.55 million tonnes this year, down 1.2% from a year earlier.

Exports of China's unwrought aluminium, including primary metal, alloy and semi-finished products, hit their lowest since February last month at 431,000 tonnes, official data showed.  Meanwhile, output of primary aluminium in China this year is seen posting its steepest annual fall on record, down 1.6% to 36 million tonnes. Net import of the commodity is estimated at 2.5 million tonnes, leaving a deficit of 530,000 tonnes.

China's primary aluminium output in 2020 is forecast to rise around 3% to 37.2 million tonnes while the market is seen facing a surplus of 330,000 tonnes in the same period. Production capacity in the country will reach 41 million tonnes this year and increase by another 1.8 million tonnes next year, with an ultimate cap of 45 million tonnes. China's output of alumina stood at 5.86 million mt in October, with metallurgical-grade materials accounting for 5.61 million mt.

Trading Ideas:
--Aluminium trading range for the day is 132-134.4.
--Aluminium dropped as decreased appetite for risk assets amid mixed signals on a US-China trade deal.
--China's aluminium consumption is seen falling for the first time in 30 years this year as both domestic demand and exports decline.
--China's output of alumina stood at 5.86 million mt in October, with metallurgical-grade materials accounting for 5.61 million mt.

Courtesy: Kedia Commodities

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