Aluminium On MCX Settled Down

Aluminium on MCX settled down -0.83% at 125.1 tracking weakness in LME prices following curbs on financing in China’s housing sector. Some Japanese aluminium buyers have agreed to pay producers a premium of $128 per tonne for shipments in the April-June quarter, reflecting higher overseas spot premiums, two sources directly involved in the quarterly pricing talks said. 

The deal, which marks a 35 percent rise from the $95 per tonne premiums in the previous quarter, is the second quarterly increase in a row and the highest in two years. Japan is Asia's biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region. The latest quarterly pricing negotiations began last month between Japanese buyers and global producers, including Rio Tinto and South32 Ltd, with initial offers at $135 a tonne.

Now in the week ahead, investors will be continuing to monitor political developments in the U.S., as Trump’s promised tax reforms come into focus. Expectations that the Trump administration would spur growth and inflation through fiscal stimulus pushed the dollar to 14-year highs in the weeks after the election. But the greenback has weakened in recent week as it became apparent that the White House would have difficulty in delivering on its legislative agenda.

Market watchers will also be watching U.S. economic reports, including figures on personal income and spending and appearances by a number of Fed officials. Technically market is under long liquidation as market has witnessed drop in open interest by -23.19% to settled at 1199, now Aluminium is getting support at 124.2 and below same could see a test of 123.2 level, And resistance is now likely to be seen at 126, a move above could see prices testing 126.8.

For Quick Trial – 8962000225 ✔
or mail us here:
✆ - 0731-6626222 | Toll Free - 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717


Suhani Verma

  • Image
  • Image
  • Image
    Blogger Comment
    Facebook Comment