Gold Silver Reports (GSR) – MCX Aluminium Under Big Liquidation, Buy Any Dips Ready for Big Target – Aluminium on MCX settled down -1.48% at 149.75 on profit booking but prices gained by 12.59% on weekly basis after the United States imposed sanctions on Russia’s UC Rusal.
MCX Aluminium is getting support key at 149 and below same could see a test of 144 level, And Resistance is now likely to be seen at 155, a move above could see prices testing 159. Technically MCX Aluminium is under long liquidation as market has witnessed drop in open interest by -19.92% to settled at 7061 while prices down -2.25 rupees.
China’s aluminium exports hit their highest in nine months in March as strong international prices led the world’s biggest producer to sell more abroad, despite a growing trade spat with the United States.
The impact of a new U.S. import tariff was limited as it only took effect from March 23, traders and analysts said, while China’s exports could rise further in coming months as U.S. sanctions on Russia’s United Company Rusal upend international trade flows.
Traders have scrambled to stockpile aluminium, given concerns that the removal of Rusal metal from the market will further tighten availability.
On-warrant aluminium stocks in London Metal Exchange warehouses fell by nearly 100,000 tonnes, exchange data showed, almost the same quantity as added to headline stocks the previous day. Almost all the aluminium in the United States was removed from Comex warehouses.
Stocks tumbled by about 44,000 tonnes to 11,168 tonnes. China’s social inventory of primary aluminum built up quickly in 2017Q3 on the market expectations of the production cuts in the winter heating season and the implementation of capacity cut targets.
However, the amount of production cuts in 2017Q4 was below the expectations, pressuring aluminum prices. Destocking has started since April.
