Aluminium gains as data from China showed factory activity increased in November.

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Aluminium gains as data from China showed factory activity increased in November.
Credit: © Reuters.

Aluminium prices exhibited a 0.3% increase, settling at 201.8, driven by positive factory activity data from China in November. The unexpected expansion in China's factory activity provided support to the aluminium market. China's aluminium production in October 2023 reached 3.641 million metric tons, marking a 6.7% year-on-year increase. Additionally, global primary aluminium output rose by 3.9% YoY to 6.116 million tonnes in October, according to data from the International Aluminium Institute. 

China imported 1.17 million metric tons of primary aluminium in January-October, a substantial 173% YoY increase. However, exports saw a decline of 41.19% YoY, resulting in net imports reaching 1.06 million metric tons, up 347.33% YoY. In October alone, imports rose 221.19% YoY and 7.9% MoM to 216,600 metric tons, while exports declined 4.67% YoY and 91.29% MoM to 600 metric tons. Amid regulatory developments, Chinese authorities, including the People's Bank of China, are reportedly creating a "whitelist" to provide lending support to 50 property developers. Internationally, a global aluminium producer has offered Japanese buyers a premium of $95 per metric ton for January-March primary metal shipments, representing a 2% decline from the current quarter. 

Technically, the market is witnessing fresh buying, with a gain in open interest by 2.42% to settle at 3977, while prices increased by 0.6 rupees. Aluminium finds support at 200.7, and a breach below may lead to a test of 199.6. On the upside, resistance is expected at 202.6, and a move above could propel prices to 203.4.

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  • Deval Shah @Deval Shah
    News may come in that a leading global aluminum producer may shut down production.
    Like 0

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