Aluminium prices dropped as concerns over China's economic revival weighed.

  • Kedia Advisory
  • Commodities News
Aluminium prices dropped as concerns over China's economic revival weighed.

Aluminium prices experienced a decline of -0.67% due to concerns surrounding the uncertainty in China's economic recovery. A contraction in consumer prices and persistent factory-gate deflation in October raised doubts about a robust resurgence in China's economy. Mixed economic indicators showed a slowdown in manufacturing activities and exports, alongside unexpected growth in imports. Chinese authorities pledged to open up the economy and boost commodity and service imports to nearly $17 trillion in the next five months, while market sentiment remained cautious amid developments concerning Chinese property giant Country Garden. 

The US dollar weakened after the US monthly payrolls report, enhancing expectations of a potential interest rate hike by the Federal Reserve in December. The ongoing monitoring of industrial metals imports in China, coupled with consumer prices, will gauge the effectiveness of Chinese stimulus measures. Despite the US trade deficit widening to $61.5 billion in September, it is the third-lowest since 2021. 

From a technical perspective, the aluminium market observed fresh selling with a 0.62% increase in open interest, while prices dropped by -1.4 rupees. Support for aluminium stands at 205.7, with a potential test at 204.8 if breached, while resistance is likely at 207.5. A move above this level could push prices toward 208.4.

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

Error: File type not supported

Drop an image here or

100

Related Articles