Aluminium Dropped On Profit Booking After Prices Rose Due To Supply Concerns

  • Kedia Advisory
  • Commodities News
Aluminium Dropped On Profit Booking After Prices Rose Due To Supply Concerns
Credit: © Reuters.

Aluminium prices, represented by "Aluminium," experienced a decline of -0.48%, settling at 207.7. The market was influenced by supply concerns following a fuel depot blast in Guinea, a major raw material producer. The incident raised fears of a shortage of bauxite, a key feed material for alumina, an intermediary product for aluminium. 

The aluminium price decline was also attributed to a weaker dollar and technical buying. Commodity Trade Advisor (CTA) investment funds, driven by computer programs, engaged in buying activities, providing additional support to aluminium prices. In China, the Big Five banks announced interest rate cuts on some deposits, seen as an effort to pave the way for further reductions in policy rates to stimulate the economy. Maritime shipping routes faced risks as carriers avoided the Red Sea due to vessel attacks by the Yemeni Houthi militant group, causing trade disruptions through the Suez Canal, which handles about 12% of global trade. Aluminium inventories in Shanghai Futures Exchange-monitored warehouses fell by 8.8% from the previous week. Additionally, global primary aluminium output in November increased by 2.7% year-on-year to 5.893 million tonnes, according to data from the International Aluminium Institute (IAI). 

Technically, the market is undergoing long liquidation, with a drop in open interest by -0.46%, settling at 3,885, while prices decreased by -1 rupee. Aluminium is currently finding support at 206.9, with a potential test of 206.1. Resistance is likely at 208.7, and a move above could lead to prices testing 209.7.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Cost Masters @Cost Masters
    This is great piece of content. I got to know many things at a time. It is better to buy subscription of online platforms or software in order to stay on track. You can try Cost Masters.
    Like 0

Related Articles