Technically Aluminium market is under short covering as market has witnessed drop in open interest by 12.62% to settled at 1585 while prices up 0.85 rupees.
Now MCX Aluminium is getting support at 194.5 and below same could see a test of 193.8 levels, and resistance is now likely to be seen at 195.8, a move above could see prices testing 196.4.
Aluminium yesterday settled up by 0.44% at 195.1 as China's commitment to curb carbon emissions sparked worries that supply of the energy-intensive metal will be limited.
The Chinese city of Baotou in Inner Mongolia shut down 34 ferroalloy companies and some captive power plants as part of a series of measures to meet its energy consumption targets for the first quarter, which could curb aluminum production by around 100,000 tonnes on an annual basis.
Chinese officials have warned that they will cap high commodity prices to dampen inflation. Social inventories of primary aluminium across eight consumption areas in China, including SHFE warrants, declined 25,000 mt from the prior week to 1.12 million mt as of April 29, and Wuxi mainly contributed to the decline.
Shipments of aluminium billet out of warehouses rose slightly by 1,500 mt on the week to 61,200 mt as high aluminium prices weighed on downstream consumption.
Data showed that stocks of 6063 aluminium billet across the five major consumption areas Foshan, Wuxi, Huzhou, Changzhou and Nanchang in China dropped 28,700 mt from the previous week to 134,000 mt as of Apr 29.
German business sentiment rose by less than expected in April, the Ifo Institute’s business climate index, as a third wave of Covid-19 infections and industrial sector supply problems weighed on the recovery of Europe’s largest economy.
--Aluminium trading range for the day is 193.8-196.4.
--Aluminium prices rose as China's commitment to curb carbon emissions sparked worries that supply of the energy-intensive metal will be limited.
--The Chinese city of Baotou in Inner Mongolia shut down 34 ferroalloy companies and some captive power plants.
--Chinese officials have warned that they will cap high commodity prices to dampen inflation.
Courtesy: Kedia Commodities