Aluminium prices experienced a slight dip of -0.19%, settling at 205.1, attributed to profit booking amidst simultaneous supply concerns and increased expectations of higher demand. China, the leading producer, imposed restrictions on production capacity expansion to curb oversupply and energy consumption. Japanese aluminium stocks decreased by 2% to 341,300 metric tons by the end of October. China's aluminium exports in October saw a year-on-year decline of 8.1%, contributing to a 17.2% decrease in exports from January to October.
The U.S. initiated anti-dumping investigations on aluminium extrusions from China and other countries, raising concerns among domestic manufacturers. On the demand side, China's commitment to an extra CNY 1 trillion borrowing for manufacturing and infrastructure supported aluminium resource demand. Reports also hinted at the People's Bank of China injecting an additional CNY 1 trillion to stimulate construction activity.
Technically, the aluminium market witnessed fresh selling with a 4.04% increase in open interest and a marginal price decline of -0.4 rupees. Support is at 204.5, with a potential test of 203.9 if breached, while resistance is expected at 206, with a potential move to 206.9 upon breaking that level.
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