Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 26.65% to settled at 2633 while prices up 2.2 rupees.
Now MCX Aluminium is getting support at 139.4 and below same could see a test of 137.6 levels and resistance is now likely to be seen at 142.2, a move above could see prices testing 143.2.
Aluminium on MCX settled up 1.59% at 141 as support seen after Aluminum producer Alcoa (NYSE:AA) Corp locked out union workers at its smelter in Quebec as an old contract expired at midnight and talks on a new agreement failed.
China's exports of unwrought aluminium and aluminium products rose for a second straight month in December, by 15.8 percent from November to 440,000 tonnes. That is also up 12.8 percent from the same month a year earlier.
Exports are now back to July levels after plummetting for four straight months before November's rebound. Full-year aluminium exports were 4.79 million tonnes, customs said, up 4.4 percent from 2016 and beating the previous record of 4.76 million tonnes exported in 2015.
Many aluminium section bar producers have stopped their production for Chinese New Year in advance due to rising costs, declining orders and compressed profits. Some companies in Shandong province would stop for 28 days starting from late January while those in Guangdong will stop for 25 days.
The suspension period is longer than in previous years. Aluminium scrap is set to see tightened supply in 2018 as environmental protection policies weigh in further. Such tightness would be mostly felt around Chinese New Year and the fourth quarter when demand increases.
In fact, secondary aluminium producers have started restocking ahead of the Chinese New Year holiday but their inventory levels hardly grew.
Trading Ideas:
--Aluminium trading range for the day is 137.6-143.2.
--Aluminium prices gained as support seen after Aluminum producer Alcoa Corp locked out union workers at its smelter in Quebec as an old contract expired.
--China’s exports of unwrought aluminium and aluminium products rose for a second straight month in December, by 15.8 percent from November to 440,000 tonnes.
--Exports are now back to July levels after plummeting for four straight months before November’s rebound.