MCX Aluminium may trade between 139-142.6 levels
Commodity Online | August 13 2019
UPDATED 10:10:31 IST

MCX Mentha Oil likely to move in a range of 1317.3-1341.9

MCX Aluminium may trade between 138.9-140.5 levels

MCX Nickel under long liquidation; Support seen at 1112.7

MCX Zinc under short covering; Resistance seen at 187

MCX Copper under short covering; Resistance seen at 447.4

Technically MCX Aluminium is getting support at 139.8 and below same could see a test of 139 levels, and resistance is now likely to be seen at 141.6, a move above could see prices testing 142.6. 

Aluminium on MCX settled down -0.28% at 140.45 on profit booking after prices gained amid eased risk aversion sentiment, alumina output controls in Xiaoyi, and expectation of a demand recovery in September-October.

Aluminium is expected to strengthen in seesaw trade in August-September as demand will pick up earlier than the commissioning of capacity. The Chinese central bank fixed its currency at a level higher than expected and this probably indicated a sign of softening in trade tensions between the world's two largest economies. 

Chinese customs data showed that the country’s US dollar-denominated exports in July rose 3.3% from a year ago while imports fell 5.6% during the same period. This left China with a trade surplus of $45.06 billion in July, compared to a $50.98 billion surplus in June. China’s trade surplus with the US was $27.97 billion in July, lower than the previous month’s $29.92 billion.

Social inventories of primary aluminium in China rose for a second straight week this week, as a low consumption season continued. Data showed that stocks across eight consumption areas in China, including SHFE warrants, increased by 1,000 mt from a week ago to stand at 1.041 million mt as of Thursday August 8.

Inventories of aluminium billet in China continued to expand this week as downstream consumption remained weak.   Data showed that stocks of 6063 aluminium billet across five major consumption areas grew some 12,500 mt from Thursday August 1 to stand at 95,900 mt as of Thursday August 8, after they climbed 700 mt in the previous week.

Trading Ideas:
--Aluminium trading range for the day is 139-142.6.
--Aluminium dropped on profit booking after prices gained amid eased risk aversion sentiment, alumina output controls in Xiaoyi.
--Aluminium is expected to strengthen in seesaw trade in August-September as demand will pick up earlier than the commissioning of capacity.
--Social inventories of primary aluminium in China rose for a second straight week this week, as a low consumption season continued.

Courtesy: Kedia Commodities

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