Technically Aluminium market is under short covering as market has witnessed drop in open interest by 10.53% to settled at 6085 while prices up 0.6 rupees.
Now MCX Aluminium is getting support at 161.9 and below same could see a test of 157.7 level, And resistance is now likely to be seen at 169.3, a move above could see prices testing 172.5.
Aluminium on MCX settled up 0.36% at 165.9 driven by fears of supply disruptions caused by U.S. sanctions on Russia's United Company Rusal. Rusal is stockpiling large quantities of aluminium at one of its plants in Siberia because U.S. sanctions imposed this month have prevented it from selling the metal to customers, five sources close to the company said.
Lenders to Rusal are exploring how to get rid of their exposure before a May deadline set by the United States, as the fallout from fresh sanctions pulls Russian loan pricing lower in Europe's secondary market.
Chinese traders are preparing to export alumina to reap the profits from record prices for spot cargoes after the United States imposed sanctions on Russia’s United Company Rusal, among the biggest producers of the aluminium raw material.
China is the world’s the biggest producer and consumer of alumina, a compound extracted from bauxite ore that is then smelted into aluminium metal. U.S. aluminium producer Alcoa (NYSE:AA) said during its first-quarter results call that there was a possibility of Chinese alumina exports but it could not confirm there was any supply exiting China yet.
Alcoa forecasts a global alumina market deficit of between 300,000 to 1.1 million metric tonnes this year, primarily due to supply disruptions in the Atlantic region. China exported 55,737 tonnes of alumina last year, according to data from the General Administration of Customs.
Trading Ideas:
--Aluminium trading range for the day is 157.7-172.5.
--Aluminium prices gained driven by fears of supply disruptions caused by U.S. sanctions on Russia's United Company Rusal.
--Rusal is stockpiling large quantities of aluminium at one of its plants in Siberia because U.S. sanctions imposed this month have prevented it from selling the metal to customers.
--China exported 55,737 tonnes of alumina last year, according to data from the General Administration of Customs.