Now MCX Aluminium is getting support at 187.3 and below same could see a test of 186 levels, and resistance is now likely to be seen at 189.9, a move above could see prices testing 191.2.
Aluminium yesterday settled up by 0.69% at 188.45 as social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, declined 45,000 mt from the prior week to 1.18 million mt as of April 15.
Stocks fell 27,000 mt in Gongyi, 14,000 mt in Nanhai and 6,000 mt in Wuxi, but rose slightly in Hangzhou and Tianjin. China's aluminium imports in March rose 40.8% from the previous month, data released by the General Administration of Customs showed.
March imports of unwrought aluminium and products were 206,556 tonnes, up from February’s nine-month low of 146,671 tonnes and up 70.9% year-on-year. First-quarter imports totaled 661,517 tonnes, up 118.8% from the same period in 2020.
China, the world's top aluminium producer, brought in record volumes of the metal last year as strong demand took Shanghai prices higher than London prices, opening an arbitrage window for cheaper overseas metal.
The arbitrage has mostly been closed in 2021 but briefly opened in mid-March as the spread between Shanghai and London prices hit its widest since July.
China's state planner expects the Consumer Price Index (CPI) to grow mildly this year and remain within the official target, its spokesperson Meng Wei said.
--Aluminium trading range for the day is 187.7-193.1.
--Aluminium gains as aluminium smelters in Xinjiang would be subject to carbon-neutrality production reductions similar to those in the Inner Mongolia.
--China's aluminium imports in March rose 40.8% from the previous month, data released by the General Administration of Customs showed.
--China's aluminium output rose in March from a year earlier to a monthly record, official data showed.
Courtesy: Kedia Commodities