Aluminium on MCX settled down -0.37% at 120.25 as commissioning of new capacity added to market supply, while consumption is softening. Rusal said that it plans to expand annual aluminum output from 2016’s level by 19% to 4.4 million tonnes by 2021, citing growth in global demand. The global aluminum giant predicts global aluminum demand will grow 13.5 million tonnes to 73.2 million tonnes over the next five years. Annual aluminum consumption is 1.4 million tonnes in Russia at present. China’s primary aluminum production rose on a year-on-year-basis in May, data from the National Bureau of Statistics (NBS) showed. Output was 2.83 million tonnes in May, up 4.2% from a year ago, and totaled 13.86 million tonnes during January-May, up 8.8% from a year ago, according to NBS data.
National Bureau of Statistics (NBS) data showed China’s alumina output rose significantly in May. Alumina production nationwide grew 19.6% year-on-year to 6.44 million tonnes in May, and surged 20.8% year-on-year to 30.9 million tonnes in the first five months of this year. China’s housing market is cooling down following a series of restrictive policy, and such condition is expected to be continuing during the rest of the year. Data showed China's economy generally remained on a solid footing in May, but tighter monetary policy, a cooling housing market and slowing investment reinforced views that it will gradually lose momentum in the coming months. The number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labour market slack that could allow the Fed to raise interest rates again this year despite moderate inflation growth.
Technically now Aluminium is getting support at 119.9 and below same could see a test of 119.5 level, And resistance is now likely to be seen at 120.9, a move above could see prices testing 121.5.
Aluminium dropped as commissioning of new capacity added to market supply
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