Aluminium prices experienced a notable upswing, closing 2.17% higher at $211.95 per metric ton yesterday. This surge was attributed to a decrease in exchange stocks and a weakening US dollar . On-warrant aluminium stocks in LME-registered warehouses hit their lowest point since August 2022, dropping to 173,875 metric tons due to fresh cancellations of 51,000 metric tons in South Korea's Gwangyang. Furthermore, Japanese aluminium buyers negotiated a reduced premium of $97 per metric ton over the benchmark price for shipments in October-December, marking a 24% decrease from the previous quarter.
Japan's demand for primary aluminium saw a substantial decline, with a 16% drop in imports from a year ago in August, contributing to a 30% decrease for the year. The decrease reflects sluggish demand in the domestic construction sector and weak export activity. Primary aluminium ingot imports from January to August registered a 30% decrease compared to the previous year. In addition to this, Japan's shipment of aluminium sheets and extrusions faced a 5.1% decline in July year-on-year, marking the 17th consecutive month of decline, according to data from the Japan Aluminium Association.
From a technical standpoint, the market has seen fresh buying interest, with a 12.57% increase in open interest, closing at 4271. Prices rose by 4.5 rupees. Aluminium is currently finding support at 209, with the potential to test 206 levels if it falls below this mark. On the upside, resistance is likely to be encountered at 213.6, and a breakthrough could lead to prices testing 215.2.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.