Technically Aluminium market is under long liquidation as market has witnessed drop in open interest by 3.91% to settled at 3419 while prices down 0.1 rupees.
Now MCX Aluminium is getting support at 137.3 and below same could see a test of 136.9 level, And resistance is now likely to be seen at 138.1, a move above could see prices testing 138.5.
Aluminium on MCX settled down 0.07% at 137.6 leaving smelters struggling to turn a profit in a well-supplied market. China's primary aluminium output rebounded in November after three straight months of decline, defying a fall in prices for the metal used in everything from construction to making cars.
The world's top aluminium maker produced 2.82 million tonnes of the material last month, data from the National Bureau of Statistics showed. That was up 3.9 percent from 2.72 million tonnes in October and up 19.2 percent from November 2017, the bureau said.
On a daily basis, China produced 94,000 tonnes of aluminium last month, versus around 88,000 tonnes in October, according to calculations. That was the highest daily rate since July, when the monthly total of 2.93 million tonnes matched the all-time high.
November has one less day than October. State-run Aluminum Corp of China Ltd known as Chalco, said on Nov. 30 that it was cutting 470,000 tonnes of annual capacity due to market conditions and environmental protection requirements. China is waging a self-styled 'war on pollution' after years of breakneck economic growth.
Top producer China Hongqiao Group has been ordered to close up to 550,000 tonnes of annual smelting capacity for the winter heating season that started in mid-November. Over the first 11 months of 2018, China produced 31.45 million tonnes of aluminium, up 7.5 percent year-on-year and on course for record annual output, the NBS data showed.
--Aluminium trading range for the day is 136.9-138.5.
--Aluminium prices fell leaving smelters struggling to turn a profit in a well-supplied market.
--China's primary aluminium output rebounded in November after three straight months of decline.
--Over the first 11 months of 2018, China produced 31.45 million tonnes of aluminium, up 7.5 percent year-on-year and on course for record annual output.
Courtesy: Kedia Commodities