Technically MCX Aluminium market is getting support at 145.8 and below same could see a test of 145 level, And resistance is now likely to be seen at 147.4, a move above could see prices testing 148.2.
Aluminium on MCX settled down 0.44% at 146.45 down on weak Chinese data and tracking weakness from LME Aluminium prices which fell 0.2 percent to $1,903 per tonne. Chinese industrial production slowing down and Chinese car sales for February down 14% Chinese consumer buying has pretty much dried up.
The three-month LME aluminium price achieved a marginal $1.50-per-tonne uptick to trade at $1906.50 per tonne, seemingly buoyed by continuing inventory drawdown from LME warehouses. 9,350 tonnes of aluminium moved out of warehouses as of 9am on March 14, leaving global stocks at 1,189,025 tonnes.
Base metals complex dropped in yesterday's session as US dollar snapped a four-session decline after the British pound stalled at lower levels ahead of a vote to extend Britain's March 29 deadline for exiting the EU. The UK Parliament voted to postpone the Brexit deadline. Data from China’s NBS said that industrial output slowed more than expected in Jan and Feb, suggesting a slowdown in the Chinese economy.
The value-added industrial output in China rose 5.3% in January-February from the previous year, compared to 5.7% a year ago and economists’ estimates of 5.6%. Thursday’s reading was the slowest growth in 17 years. While from US side the number of Americans filing for unemployment benefits increased more than expected last week, hinting at a slowdown in the labour market.
Now traders are eyeing for today data that the eurozone will release its February CPI, and the US will release its industrial output for February and the University of Michigan consumer sentiment index for March.
--Aluminium trading range for the day is 145-148.2.
--Aluminium dropped as industrial output in China fell to a 17-year low in the first two months of 2019.
--China's aluminium output fell 2 percent on a daily basis in the first two months of 2019 from December's record rate.
--China’s industrial output grew 5.3 percent in the first two months of this year, the slowest pace of expansion in 17 years.
Courtesy: Kedia Commodities