Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 2.77% to settled at 2419 while prices down 2.25 rupees.
Now MCX Aluminium is getting support at 141.2 and below same could see a test of 140.3 levels, and resistance is now likely to be seen at 143.6, a move above could see prices testing 145.1.
Aluminium on MCX settled down 1.56% at 142 as pressure seen after rebound in social inventories of primary aluminium ingots in China, the first weekly increase in about four months. This, together with lower costs for alumina, electricity and anodes, will continue to weigh on aluminium prices.
China's consumer prices continued stable growth while inflation at the factory gates weakened. The consumer price index (CPI), a main gauge of inflation, rose 2.7% year on year in June, the same expansion as that of May, the National Bureau of Statistics (NBS) said.
For the first half of this year, CPI increased 2.2% compared with the same period last year, according to the NBS. NBS data also showed that China's producer price index (PPI), which measures costs for goods at the factory gate, rose 0.3% year on year in the first half of 2019. Inventories of aluminium billet in China decreased as fewer deliveries arrived at warehouses.
Data showed that stocks of 6063 aluminium billet across five major consumption areas shrank by some 1,700 mt from Thursday July 4 to stand at 81,500 mt as of Thursday July 11, after they gained 5,500 mt in the previous week.US wholesale inventories rose in May amid a strong increase in the automotive sector, but the accumulation pace is slowing, supporting views that inventory accumulation could be a drag on economic growth in the second quarter.
--Aluminium trading range for the day is 140.3-145.1.
--Aluminium prices dropped as pressure seen after rebound in social inventories of primary aluminium ingots in China.
--Data showed that stocks of 6063 aluminium billet across five major consumption areas shrank by some 1,700 mt.
--China's consumer prices continued stable growth while inflation at the factory gates weakened.
Courtesy: Kedia Commodities