MCX Aluminium may trade between 219.9-257.1 levels
Commodity Online | October 22 2021
UPDATED 10:40:04 IST

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Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 17.81% to settled at 1426 while prices down 14.7 rupees.

Now MCX Aluminium is getting support at 226.4 and below same could see a test of 219.9 levels, and resistance is now likely to be seen at 245, a move above could see prices testing 257.1.

Aluminium yesterday settled down by 5.94% at 232.85 as Chinese authorities took actions to ease an energy crisis that has been behind significant production and supply disruptions.

International aluminium prices was close down yesterday as the coal prices plummeted, but the overnight trading recovered some of the losses. On the supply side, places like Xinjiang may experience a new wave of production reduction, leading to a decrease in the aluminium operating capacity.

The global energy crisis has also arouse the market concerns over worldwide short supply. Sentiments remain firm as the demand side look impressive, the power rationing has restrained the downstream demand, so the aluminium ingot social inventory has been falling for six weeks in a row.

The market shall watch if the sluggish demand will suppress the prices. The aluminium supply is highly likely to shrink in the near future, while the bearish sentiment could hardly find a place in the fundamentals.According to statistics from the General Administration of Customs of China.

The country imported around 252,900 tons of unwrought aluminum and aluminum products (including primary aluminum and unwrought aluminum alloy) in September this year, rising by 2.2% compared to the previous month while sliding by nearly 29% from the same month a year ago.China’s aluminum imports in September were supported by strong demand for overseas sources as domestic production was restricted.

Trading Ideas:
--Aluminium trading range for the day is 219.9-257.1.
--Aluminum slipped as Chinese authorities took actions to ease an energy crisis that has been behind significant production and supply disruptions.
--On the supply side, places like Xinjiang may experience a new wave of production reduction, leading to a decrease in the aluminium operating capacity.
--China imported around 252,900 tons of unwrought aluminum and aluminum products in September this year, rising by 2.2%.

Courtesy: Kedia Commodities

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