MCX Aluminium may trade between 162.2-165.4 levels
Commodity Online | January 15 2021
UPDATED 10:40:46 IST

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Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 10.11% to settled at 806 while prices down 0.5 rupees.

Now MCX Aluminium is getting support at 163 and below same could see a test of 162.2 levels, and resistance is now likely to be seen at 164.6, a move above could see prices testing 165.4.

Aluminium yesterday settled down by 0.3% at 163.6 as dollar gained supported by higher U.S. yields, as President-elect Joe Biden prepared to outline his plans for massive fiscal stimulus.

China's exports grew more than expected in December, albeit at a slower pace than the month before, as global demand for Chinese goods remained solid, while import growth quickened.

Global miner Rio Tinto said it had reached an agreement with electricity provider Meridian Energy to allow its aluminium smelter in New Zealand to continue operations until December 2024.China’s primary aluminium output rose 8% year on year to 3.28 million mt in December (31 production days), showed an SMM survey.

As of early January, there was 39.24 million mt among 44.2 million mt per year of existing primary aluminium capacity in operation, while operating rates across Chinese primary aluminium producers stood at 90.8%.

The daily average primary aluminium output rose 300 mt from November to 105,800 mt in December, and Yunnan Shenhuo and Inner Mongolia Chuangyuan mainly contributed to the increase.

China’s alumina output stood at 5.96 million mt in December. This included 5.75 million mt of metallurgical-grade alumina, with the daily output down 4.04% on the month but up 2.26% on the year to 185,500 mt.

Trading Ideas:
--Aluminium trading range for the day is 162.2-165.4.
--Aluminium dropped as dollar gained supported by higher U.S. yields, as President-elect Joe Biden prepared to outline his plans for massive fiscal stimulus.
--China's exports grew more than expected in December, albeit at a slower pace than the month before.
--China’s primary aluminium output rose 8% year on year to 3.28 million mt in December.

Courtesy: Kedia Commodities
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