MCX Aluminium may trade between 134-136.4 levels
Commodity Online | June 26 2020
UPDATED 10:40:43 IST

MCX Mentha Oil likely to move in a range of 930.1-963.1

MCX Aluminium may trade between 138.9-147.9 levels

MCX Nickel likely to move in a range of 1023.1-1083.9

MCX Zinc under short covering; Resistance seen at 186.1

MCX Copper under fresh buying; Resistance seen at 515

Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 0.26% to settled at 777 while prices down 0.1 rupees.

Now MCX Aluminium is getting support at 134.7 and below same could see a test of 134 levels, and resistance is now likely to be seen at 135.9, a move above could see prices testing 136.4.

Aluminium yesterday settled down by 0.07% at 135.5 as dollar gains as an increase in coronavirus cases in US undermined hopes for a quick turnaround in the pandemic-hit economy.

Also weighing was news that Washington is considering changing tariff rates for various European products as part of the trading partners’ aircraft dispute.China’s May aluminium imports more than doubled year on year but failed to hit an expected decade-high, official data showed.

The aluminium market is pricing in rising prospects of the United States replacing Canada’s exemption from import tariffs with quotas.

The IMF slashed its 2020 global output forecasts further as it sees deeper and wider damage from the pandemic than first thought.

It now expects global output to shrink by 4.9%, compared with a 3.0% contraction predicted in April, with U.S. output now forecast to shrink 8.0%, more than 2 percentage points worse than the April forecast. Primary aluminium ingot inventories in China continued to trend lower, showed data.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 32,000 mt from last Thursday June 18 to 722,000 mt as of Wednesday June 24, following a decline of 33,000 mt in the previous week.Inventories of aluminium billet in China extended their declines as arrivals at warehouses remained limited.

Trading Ideas:
--Aluminium trading range for the day is 134-136.4.
--Aluminium dropped as dollar gains as an increase in coronavirus cases in US undermined hopes for a quick turnaround in the pandemic-hit economy.
--China’s May aluminium imports more than doubled year on year but failed to hit an expected decade-high, official data showed.
--The aluminium market is pricing in rising prospects of the United States replacing Canada’s exemption from import tariffs with quotas.

Courtesy: Kedia Commodities