Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 3.91% to settled at 713 while prices down 1.05 rupees.
Now MCX Aluminium is getting support at 161.6 and below same could see a test of 160.8 levels, and resistance is now likely to be seen at 163.5, a move above could see prices testing 164.6.
Aluminium yesterday settled down by 0.64% at 162.25 as amid higher output in the top producer and consumer."The global aluminium market is oversupplied in 2020 but there is currently genuine tightness in China, which is driving the recent price strength.
China's primary aluminium imports in October fell 35% from the prior month, according to Reuters calculations based on customs data, as the closure of a rare arbitrage window saw shipments ease.
The world's biggest producer and user of aluminium brought in 111,633 tonnes of primary metal last month, data from the General Administration of Customs showed. That was down from 171,739 tonnes in September but still up almost 25 times from the year-earlier level.
The month-on-month drop, the second in a row, came after the spread between China's domestic aluminium prices and international prices narrowed to the point where it was no longer favourable to bring in metal from overseas and sell in China via a so-called arbitrage trade.
The arbitrage opened in May and China became a net aluminium importer in July and August for the first time in more than a decade.Global primary aluminium output rose in October to 5.592 million tonnes, up 4.5% year on year, data from the International Aluminium Institute (IAI) showed. Estimated Chinese production was 3.23 million tonnes in October, it added.
--Aluminium trading range for the day is 160.8-164.6.
--Aluminium prices dropped as amid higher output in the top producer and consumer.
--China's primary aluminium imports in October fell 35% from the prior month.Global primary aluminium output rose in October to 5.592 million tonnes, up 4.5% year on year, IAI showed.
Courtesy: Kedia Commodities