Aluminium on MCX settled up by 0.68% at 110.35 as support seen from LME Aluminium which rose by 0.4 percent to finish at $1,653 as support seen after the news that the People’s Republic of China’s Henan Xiangjiang Wanji Aluminum Co., Ltd. has shut down its alumina refinery in Wanji on account of the potential of a dangerous red mud landslide.
According to CRU, the timetable for reopening the facility is not known at this time. A source from within the country indicates that the southwest corner of its red-mud dam body is unsound, threatening a red-mud slide. The Xinan town government received a report of same and dispatched a working group to the area shortly thereafter. The government required the refinery to cease discharging red mud at once for safety reasons.
CRU consultant Jackie Wang opines that the 1.4 million-metric-ton-per-annum refinery will require between three and six months to resume operations. On a macro level, many aluminium refineries in the province have been affected recently by government environmental inspections. While Investors are cautious ahead of key Chinese data releases on Friday – industrial production, retail sales and fixed asset investment. Concerns are growing over Chinese economic growth after recent Chinese import data showed the previous uptick at the beginning of the year was fading.
Technically market is under fresh buying as market has witnessed gain in open interest by 5.19% to settled at 2372 while prices up 0.75 rupee, now Aluminium is getting support at 109.9 and below same could see a test of 109.3 level, And resistance is now likely to be seen at 110.8, a move above could see prices testing 111.1.
Trading Ideas:
- Aluminium trading range for the day is 109.3-111.1.
- Aluminium prices gained after the news China’s Wanji Aluminum Co. Ltd has shut down its alumina refinery.
- Shut down has been inforced on account of the potential of a dangerous red mud landslide.
- Investors are cautious ahead of key Chinese data – industrial production, retail sales and fixed asset investment.