Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 4.83% to settled at 2213 while prices down 3.65 rupees.
Now MCX Aluminium is getting support at 224 and below same could see a test of 222.4 levels, and resistance is now likely to be seen at 228.2, a move above could see prices testing 230.8.
Aluminium yesterday settled down by 1.59% at 225.45 on profit booking as investors moved from risky assets after a new outbreak of coronavirus was reported.
Pressure also seen dragged down by mounting fears that higher interest rates in the US could trigger capital outflows.The social aluminium inventories in China rose 20,000 mt from last Thursday to 771,000 mt, which indicated that demand has been suppressed by soring aluminium prices.
Output curbs in China, the world's biggest aluminium producer, and political turmoil in Guinea, have boosted aluminium prices by around 50% so far this year.ShFE aluminium inventories fell to 228,529 tonnes, their lowest since December 2020, while stocks of the metal in the LME warehouses have dropped 33% since March to 1.32 million tonnes.
Southwest China's Yunnan has told "green" aluminium smelters those using the province's hydropower as their electricity source to keep average monthly output for September-December at August volumes or lower, a government document shows. As of August, Yunnan aluminium smelters had already shut down nearly 1 million tonnes of annual capacity due to power curbs.
--Aluminium trading range for the day is 222.4-230.8.
--Aluminium dropped on profit booking as investors moved from risky assets after a new outbreak of coronavirus was reported.
--Pressure also seen dragged down by mounting fears that higher interest rates in the US could trigger capital outflows.
--China's Yunnan imposes output curbs on aluminium.
Courtesy: Kedia Commodities