Technically Aluminium market is under short covering as market has witnessed drop in open interest by 3.54% to settled at 2237 while prices up 0.7 rupees.
Now MCX Aluminium is getting support at 135 and below same could see a test of 134.4 level, and resistance is now likely to be seen at 136.1, a move above could see prices testing 136.6.
Aluminium on MCX settled up 0.52% at 135.65 as stocks in the warehouses tracked by ShFE were at their lowest since March 2017 at 278,736 tonnes.China said it had agreed with the United States to cancel tariffs in phases, a key demand of Beijing for sealing a deal to end a trade war that has slowed economic growth and roiled markets.
China's aluminium exports edged down 0.9% in October from the previous month to their lowest since February. The world's top aluminium producer, hit by two major smelter outages in August that are ongoing, last month exported 431,000 tonnes of unwrought aluminium, including primary metal, alloy and semi-finished products.
The number compared to exports of 435,000 tonnes in September and was also down 10.6% year-on-year. Jan-October aluminium exports were 4.8 million tonnes, up 1.4% from the same period last year, customs said. Social inventories of primary aluminium in China extended their decline this week, pulled by a sharp decline in Nanhai with limited arrivals.
Data showed that stocks across eight consumption areas in China, including SHFE warrants, decreased by 17,000 mt from a week ago to 853,000 mt as of Thursday November 7. Inventories of aluminium billet in China declined for the fourth straight week as of November 7, even as downstream consumption slowed.
--Aluminium trading range for the day is 134.4-136.6.
--Aluminium prices gained as stocks in the warehouses tracked by ShFE were at their lowest since March 2017 at 278,736 tonnes.
--China said it had agreed with US to cancel tariffs in phases, a key demand of Beijing for sealing a deal to end a trade war that has slowed economic growth.
--China's aluminium exports edged down 0.9% in October from the previous month to their lowest since February.
Courtesy: Kedia Commodities