MCX Aluminium under fresh buying; Resistance seen at 151.8
Commodity Online | April 25 2019
UPDATED 10:10:02 IST

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Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 12.9% to settled at 1059 while prices up 0.6 rupees.

Now MCX Aluminium is getting support at 150.2 and below same could see a test of 149.3 level, And resistance is now likely to be seen at 151.8, a move above could see prices testing 152.5.

Aluminium prices remained in range amid expectations of a supply surplus for the third quarter. Chile's central bank is expected to hold its benchmark interest rate at 3 percent through May of 2020.

Traders have continued to push back predictions for the next rate rise in the world's top copper producer as economic growth has slowed and inflation continues to hover at the lower end of the bank's target range.China's imports of scrap metal in March rebounded from the previous month's low, rising 56.25 percent to 250,000 tonnes, data from the General Administration of Customs showed.

Provincial authorities will start collecting applications for licences to import the restricted higher-grade material from late May. Meanwhile, China's alumina imports fell 40 percent from 50,000 tonnes in February to 30,000 tonnes last month, the customs data showed.

Alumina exports, which surged in 2018 due to global shortages of the aluminium raw material, were up 28.9 percent from the previous month at 4,439 tonnes, but China remained a net alumina importer for the second straight month. Fewer supplies from Xinjiang boosted aluminium billet processing fees in Guangdong, which relies much on Xinjiang materials.

Molten aluminium supply issue also plagued aluminium billet producers in Shandong. About 1.5 million mt/year of capacity across the country has been slashed since 2018, while some 1.49 million mt/year of new capacity entered operation.

Trading Ideas:
--Aluminium trading range for the day is 149.3-152.5.
--Aluminium prices remained in range amid expectations of a supply surplus for the third quarter.
--China's aluminium production fell 3.6 percent on a daily basis in March from the previous two months to its lowest rate since October.
--Data showed China?s economic growth in the first quarter remained steady at 6.4 percent, beating expectations for a 6.3 percent expansion.

Courtesy: Kedia Commodities

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