MCX Aluminium under short covering; Support seen at 150.8
Commodity Online | April 26 2019
UPDATED 10:10:57 IST

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Technically Aluminium market is under short covering as market has witnessed drop in open interest by 6.33% to settled at 992 while prices up 0.1 rupees.

Now MCX Aluminium is getting support at 150.8 and below same could see a test of 150.3 level, And resistance is now likely to be seen at 151.7, a move above could see prices testing 152.1.

Aluminium on MCX settled up 0.07% at 151.2 on expectations of higher consumption and lower stocks. Global primary aluminium output rose to 5.414 million tonnes in March from a revised 4.916 million tonnes in February, data from the International Aluminium Institute (IAI) showed.

Aluminium inventories in London Metal Exchange warehouses fell by 5,125 tonnes to 1.03 million tonnes, the lowest since October. Global aluminium production flat lined in the first quarter of this year, according to the International Aluminium Institute (IAI).

A couple of long-running outages together with curtailments in Europe caused production outside China to dip 1.4 percent to 6.37 million tonnes in the first three months of 2019. Chinese production, a complex moving picture of price-induced curtailments, pollution controls and capacity swaps, edged 1.6 percent higher to 8.93 million tonnes.

The net result was that global production rose by a marginal 0.3 percent year-on-year as China remained the world's dominant player with a 57 percent share of world production. China's aluminium production landscape remains a confused kaleidoscope of curtailments, ramp-ups and new-for-old capacity.

The IAI's estimates of national production continue to run higher than the official numbers to the tune of 355,000 tonnes in the first quarter, although both data sets point to the same historically low growth rate. New capacity is being strictly controlled, which doesn't prevent a producer such as Hongqiao being able to replace "illegal" closed capacity with new, officially sanctioned smelters.

Trading Ideas:
--Aluminium trading range for the day is 150.3-152.1.
--Aluminium prices rallied on expectations of higher consumption and lower stocks.
--Global primary aluminium output rose to 5.414 million tonnes in March from a revised 4.916 million tonnes in February.
--Global aluminium production flat lined in the first quarter of this year, according to the International Aluminium Institute (IAI).

Courtesy: Kedia Commodities

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