Gold Silver Reports ✅ — Technically MCX Aluminium market is getting support at 124 and below same could see a test of 122 level, And resistance is now likely to be seen at 127, a move above could see prices testing 128.
Aluminium on MCX settled down -1.37% at 125.75 as pressure seen after data showed activity at China’s factories expanded for a ninth straight month in March but at a softer pace as new export orders slowed.
That has raised questions about whether a recent pickup in global demand is losing steam. While this week MCX Aluminium held firm on expectations of a tighter market, but rising prices are likely to mean producers restart capacity and fill any gap between supply and demand. Yesterday Benchmark aluminium on the London Metal Exchange ended down 0.5 percent at $1,952 a tonne.
Last week the metal used widely in transport and packaging rose to $1,981, its highest since Dec 2014. While overall sentiments remain bullish for Aluminium prices and expected to move up this month as support continuous to seen after increasing levels of air pollution in China working in favor of prices.
China, which accounts for nearly 54 per cent of the 58.9mt global aluminium production, is expected to close down some of its highly polluting production centers over the next five years as part of its National Air Pollution Plan.
Prices have moved up about 16 per cent over the last seven months, between August 2016 and March 2017. The metal is currently trading at $1,946 per tonne on the LME. The revival in US manufacturing over the last four months and healthy auto sales, both in the US and China, in 2016 are positives for the metal’s short-term and long-term prospects. — Neal Bhai Reports
