Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 2.84% to settled at 1919 while prices down 0.4 rupees.
Now MCX Aluminium is getting support at 138.6 and below same could see a test of 138.1 levels, and resistance is now likely to be seen at 139.6, a move above could see prices testing 140.1.
Aluminium on MCX settled down 0.29% at 139.05 amid expectations of higher supply and sluggish consumption in the fourth quarter. Improving consumption in a high season in September-October and expectations of greater supply pressure in November widened the backwardation on SHFE aluminium.
China’s production of primary aluminium dipped 0.3% from a year ago to 2.97 million mt in August, the National Bureau of Statistics (NBS) said. This brought output in the first eight months of 2019 to 23.47 million mt, up 1.4% from the same period last year.
NBS data also showed that Social inventories of primary aluminium in China inched up over the weekend, when people celebrated the Mid-Autumn Festival.Data showed that stocks across eight consumption areas in China, including SHFE warrants, increased by 6,000 mt from Thursday September 12 to stand at 978,000 mt as of Monday September 16.
Data showed China’s industrial production grew at the weakest pace in 17-1/2 years last month and fixed-asset investment in January-August increased at a slightly lower rate than expected. Production rose 4.4% in August year-on-year, slower than the 4.8% growth in July, according to data published by the National Bureau of Statistics. The data also showed retail sales growth at 7.5%, below the 7.9% expected in a Reuters poll and the 7.6% increase in July.
--Aluminium trading range for the day is 138.1-140.1.
--Aluminium prices dropped amid expectations of higher supply and sluggish consumption in the fourth quarter.
--China's August alumina output rose 3.5% year-on-year to 6.04 million tonnes but was down 2.9% from July to its lowest since October 2018.
--China’s production of primary aluminium dipped 0.3% from a year ago to 2.97 million mt in August, the National Bureau of Statistics (NBS) said.
Courtesy: Kedia Commodities