MCX Aluminium may trade between 132.1-135.9 levels
Commodity Online | March 30 2020
UPDATED 10:10:03 IST

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MCX Aluminium may trade between 130.5-132.9 levels

Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 7.74% to settled at 3669 while prices down 1.05 rupees.

Now MCX Aluminium is getting support at 133 and below same could see a test of 132.1 levels, and resistance is now likely to be seen at 134.9, a move above could see prices testing 135.9.

Aluminium yesterday settled down by 0.78% at 133.85 as a series of stimulus steps around the world, including a gigantic US package, calmed a panic over a global recession following the coronavirus outbreak.

G20 nations pledged to inject $5 trillion into the global economy after a virtual summit on.US Federal Reserve Chairman Jerome Powell said that the central bank will not “run out of ammunition” to keep the economy stable.

Chalco, China’s biggest state-run aluminium producer, churned out 9% less metal in 2019 as it shut two uncompetitive smelters and barely eked out a profit in the fourth quarter, while it played down the impact of the coronavirus on the industry.

Chalco, or Aluminum Corp of China Ltd, produced 3.79 million tonnes, just managing to retain its spot as the world’s No.2 listed aluminium producer ahead of rival Rusal’s 3.76 million tonnes.

The lower production numbers come as Chinese aluminium firms brace for a difficult 2020 with prices crashing to more than four-year lows of 11,340 yuan ($1,602) a tonne this week amid ample supply, coronavirus-hit demand and a broad selloff by commodities investors.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, increased 20,000 mt in the week ended March 26 to 1.667 million mt, less than half of the build of 54,000 mt in the previous week.

Trading Ideas:
--Aluminium trading range for the day is 132.1-135.9.
--Aluminium prices trading in range as a series of stimulus steps around the world, including a gigantic US package, calmed a panic over a global recession.
--Chalco, churned out 9% less metal in 2019 as it shut two uncompetitive smelters and barely eked out a profit in the fourth quarter.
--Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, increased 20,000 mt.

Courtesy: Kedia Commodities