MCX Aluminium may trade between 142.5-147.3 levels
Commodity Online | May 24 2019
UPDATED 10:10:58 IST

MCX Mentha Oil may trade between 1310.1-1371.3 levels

MCX Aluminium under fresh buying; Resistance seen at 144.2

MCX Nickel under short covering; Support seen at 859.6

MCX Zinc under fresh selling; Support seen at 202.9

NCDEX Chana under long liquidation; Resistance seen at 4457

Technically Aluminium market is under short covering as market has witnessed drop in open interest by 3.88% to settled at 991 while prices up 1.3 rupees.

Now MCX Aluminium is getting support at 144.1 and below same could see a test of 142.5 level, And resistance is now likely to be seen at 146.5, a move above could see prices testing 147.3. 

Aluminium gained after Shanxi Huasheng Aluminum will close all capacity of primary aluminium after the last 10 electrolytic baths are shuttered as scheduled. Norsk Hydro’s Albras aluminium smelter will ramp up its output after restrictions, and this depressed confidence in longs.

Albras aluminium smelter in Brazil, partly owned by Norsk Hydro , started to ramp up its output on Tuesday after a Brazilian federal court lifted production restrictions at the Alunnorte alumina plant, the Norwegian company said.

The Alunorte plant, an important supplier to the aluminium industry, has been forced to operate at half capacity since a spill in February 2018 which prompted regulators and courts to restrict output. Spot aluminium trades in east China remained brisk as lower prices drove downstream consumers to purchase and as the backwardation on SHFE aluminium and spot premiums grew the inclination to sell.

Trades in south China improved from the previous day, as downstream consumers stepped up procurement, in part for the upcoming weekend. Global primary aluminium output fell to 5.203 million tonnes in April from revised 5.379 million tonnes in March, data from the International Aluminium Institute showed.

Wood Mackenzie raised its global market balance for alumina by 100,000 tonnes to 1.2 million tonnes as the increase in Alunorte's production was offset by curtailments in China. Stocks of aluminium in warehouses certified by the Shanghai Futures Exchange (ShFE) fell to their lowest since Oct. 2017 at 569,131 tonnes, data showed.

Trading Ideas:
--Aluminium trading range for the day is 142.5-147.3.
--Aluminium gained after Shanxi Huasheng Aluminum will close all capacity of primary aluminium after the last 10 electrolytic baths are shuttered as scheduled.
--Norsk Hydro’s Albras aluminium smelter will ramp up its output after restrictions, and this depressed confidence in longs.
--Wood Mackenzie raised its global market balance for alumina by 100,000 tonnes to 1.2 million tonnes.

Courtesy: Kedia Commodities

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