Technically Aluminium market is under short covering as market has witnessed drop in open interest by 5.2% to settled at 547 while prices up 0.25 rupees.
Now MCX Aluminium is getting support at 150.9 and below same could see a test of 150 levels, and resistance is now likely to be seen at 152.8, a move above could see prices testing 153.8.
Aluminium yesterday settled up by 0.16% at 151.8 as shortages of aluminium for financing deals have significantly boosted prices of metal that can be bought for spot delivery or on physical markets against those for longer dated maturities.
Global primary aluminium output fell to 5.424 million tonnes in September from revised 5.524 million tonnes in August, data from the International Aluminium Institute (IAI) showed.
Estimated Chinese production fell to 3.15 million tonnes in September from revised 3.184 million tonnes in August.The U.S. Department of Commerce will investigate aluminum foil imported from Armenia, Brazil, Oman, Russia and Turkey for potential dumping or unfair subsidies, it said in a statement.
China's aluminium production in September rose 7.9% from a year earlier, official data showed, setting a record daily output as strong prices and new smelter launches boosted supply. The world's top producer of the metal churned out 3.16 million tonnes of primary aluminium last month, the National Bureau of Statistics said.
That was slightly down from the previous monthly record of 3.171 million tonnes in August, which had one more day than September, and works out at 105,333 tonnes on a daily basis. Antaike estimates 375,000 tonnes of new annual capacity came on stream last month and a further 160,000 tonnes of capacity restarted.
--Aluminium trading range for the day is 150-153.8.
--Aluminium prices gained as shortages of aluminium for financing deals have significantly boosted prices.
--Global aluminium output falls to 5.424 mln T in Sept – IAI.
--China's aluminium production in September rose 7.9% from a year earlier, official data showed.
Courtesy: Kedia Commodities