Aluminium gains on optimism for further stimulus for the property sector in China.

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Aluminium gains on optimism for further stimulus for the property sector in China.

Aluminium prices showed a modest increase of 0.12%, settling at 205.7, driven by optimism regarding potential stimulus measures for China's property sector. Chinese regulators, including the People's Bank of China, are working on a "whitelist" lending support for 50 property developers, enhancing market sentiment. However, concerns arose as smelters in Yunnan province began cutting 1.15 million tons of capacity to comply with power curbs lasting until April, impacting around 12% of China's total aluminium capacity.

Global primary aluminium output in October increased by 3.9% year-on-year to 6.116 million tonnes, as reported by the International Aluminium Institute (IAI). China's aluminium imports rose for the fifth consecutive month in October, reaching 351,065 metric tons, a 5.8% increase from September and a substantial 78.7% surge from the previous year. This rise is attributed to solid demand and expectations of reduced domestic supply.

Technically, the aluminium market is experiencing short covering, with a -12.22% drop in open interest to settle at 2091. Aluminium prices increased by 0.25 rupees. Support is identified at 204.8, potentially testing 203.9 if breached. Resistance is likely at 206.5, with a move above indicating a potential test of 207.3.

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