Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 5.8% to settled at 910 while prices down 0.85 rupees.
Now MCX Aluminium is getting support at 137.5 and below same could see a test of 136.3 levels, and resistance is now likely to be seen at 140.4, a move above could see prices testing 142.1.
Aluminium yesterday settled down by 0.61% at 138.55 as uncertainty about the pace of economic recovery amid continued surge in coronavirus cases weighed on prices.
Investors weighed hopes for a quick economic recovery against concerns about a resurgence in the coronavirus pandemic, particularly in the US. China’s primary aluminium output rose 2.42% year on year to 3 million mt in June (30 days).
As of the end of June, there was 36.76 million mt among 41.23 million mt per year of existing primary aluminium capacity in operation, up 180,000 mt from a month ago.
While operating rates across Chinese primary aluminium producers inched up 0.3 percentage point to 89% as high margins encouraged newly-commissioned and resumed capacities to ramp up.
During the first six months of 2020, China’s primary aluminium output increased 2.93% year on year to 18.01 million mt, while consumption dipped 0.18% to 17.69 million mt.
The decline in consumption was much smaller than a drop of 2.39% seen in the January-to-May period as inventories maintained their steep fall amid mild supply increases and robust downstream demand.
Global miner Rio Tinto said it will wind down operations and eventually close its New Zealand Aluminium Smelters venture citing non-viability of the business due to high costs and challenging outlook for the aluminium industry.
--Aluminium trading range for the day is 136.3-142.1.
--Aluminium dropped as uncertainty about the pace of economic recovery amid continued surge in coronavirus cases weighed on prices.
--China’s primary aluminium output rose 2.42% year on year to 3 million mt in June (30 days).
--Rio Tinto to shutter aluminium smelter in New Zealand on bleak industry outlook.
Courtesy: Kedia Commodities