Now MCX Aluminium is getting support at 149.5 and below same could see a test of 148.9 levels, and resistance is now likely to be seen at 150.7, a move above could see prices testing 151.3.
Aluminium yesterday settled down by 0.03% at 150.15 as the increasingly rapid spread of the Covid-19 virus across most of the northern hemisphere made the prospect of renewed lockdowns and all of the attendant negative effects on the economy more likely.
The Ministry of Ecology and Environment urged enterprises to cut production, as well as reducing excess capacity and eliminating outdated capacity, in order to combat air pollution across the Yangtze River Delta Region (Jiangsu, Zhejiang, Anhui provinces) during the autumn and winter season of 2020-2021.
China reverted to being a net aluminium exporter in September, official data showed, as the price gap between foreign and domestic metal narrowed, making shipments from overseas more expensive and reducing import volumes.
The world's top aluminium producing country imported 355,999 tonnes of unwrought aluminium and aluminium products last month, the General Administration of Customs said.
That compared with exports of 426,469 tonnes. China exported 426,000 mt of unwrought aluminium and aluminium semis in September, up 7.7% month on month and down 2.1% year on year, according to customs data.
Exports from January to September totalled 3.56 million mt, down 18.6% from a year ago. Exports are unlikely to increase significantly in October, in light of possible resurgence of COVID-19 overseas and increasing anti-dumping measures.
--Aluminium trading range for the day is 148.9-151.3.
--Aluminium dropped as the increasingly rapid spread of the Covid-19 virus made the prospect of renewed lockdowns.
--The Ministry of Ecology and Environment urged enterprises to cut production, as well as reducing excess capacity and eliminating outdated capacity.
--The White House tamped down hopes for a COVID-19 relief package to be agreed ahead of the Nov. 3 presidential election.
Courtesy: Kedia Commodities