Now MCX Aluminium is getting support at 181 and below same could see a test of 179.3 levels, and resistance is now likely to be seen at 183.8, a move above could see prices testing 184.9.
Aluminium yesterday settled up by 0.99% at 182.75 as new US infrastructure plan to boost market confidence. The US economic data was upbeat last week, with new orders growing strongly.
The manufacturing PMI stood at 64.7, the highest since 1983, and ADP non-farm payrolls stood at the highest since September 2020. Upbeat PMI in China boosted bulls confidence, bolstering Chinese stocks and commodities.
The follow-up new infrastructure plan in the United States became the latest bait of the bulls. US President Biden officially announced last Thursday a stimulus package of over $2 trillion, aiming at optimizing the development of US infrastructure and manufacturing industry.
In the aluminium scrap market, import restrictions reduced supply, while high and volatile aluminium prices curbed downstream purchase. As it is difficult for prices of traditional gasoline cars, the biggest consumer of aluminium scrap tense, to rise, the sharp increase in the price of raw materials will not be acceptable to buyers.
The standards for imported raw materials remain strict. Some importers tried to import raw materials into the domestic market through ports in Guangdong, but it was heard that most of the cargoes were rejected. With the import window still closed, most of the aluminium scrap that arrived recently was ordered before CNY.
--Aluminium trading range for the day is 179.3-184.9.
--Aluminium prices gained as new US infrastructure plan to boost market confidence.
--The US economic data was upbeat last week, with new orders growing strongly.
--Upbeat PMI in China boosted bulls confidence, bolstering commodities.
Courtesy: Kedia Commodities