Aluminium on MCX settled down -0.83% at 125.10 amid continuous rise in LME stocks after prices seen supported last week as China pressed on with plans to cut output by 30 percent. Inventories of aluminum ingot in China’s five major trading markets climbed above 1 million mt as of now. The inventories in the five markets, namely Shanghai, Wuxi, Hangzhou, Gongyi, and Nanhai, grew for 9 weeks in a row, and the level of inventories in those regions have been far higher than the level seen the same period of last year.
Premier Li Keqiang told the National People’s Congress in Beijing that the government will target slower economic growth this year. Gross Domestic Product rose by 6.7% in 2016, according to official figures. That was the smallest rise since 1990. However, Beijing will tolerate a slightly lower rate still in 2017 as it seeks to reform the economy and deal with a huge debt build-up.
The administration is now aiming at growth of ‘around 6.5%’ this year Premier Li Keqiang said. Japan spot aluminum premiums rose to $100-$115/mt plus London Metal Exchange cash CIF Japan on Friday, from $95-$115/mt plus LME cash CIF Japan on Thursday on more buyers. In the week ahead, markets will be looking ahead to Friday’s U.S. jobs report, which could seal the deal for a Fed rate hike later this month.
Investors will also be looking to the outcome of Thursday’s European Central Bank meeting for fresh cues on the future direction of its stimulus program. Technically now Aluminium is getting support at 124.2 and below same could see a test of 123.3 level, And resistance is now likely to be seen at 125.9, a move above could see prices testing 126.7.