Aluminium On MCX Settled Up 0.87%

Aluminium on MCX settled up 0.87% at 122.25 as support seen after the news that China has ordered aluminium producers in 28 cities to cut output during the winter and outlined plans to curb coal use in the capital in its battle against smog. 

Pressure seen as China accounts for more than half of global aluminium production estimated at about 59 million tonnes last year. Benchmark aluminium on the London Metal Exchange ended 0.8 percent up at $1,905.5 a tonne, having touched $1,911.50, its highest since May 5.

Support also seen for base metals also came from a weaker U.S. currency, which makes dollar-denominated metals cheaper for non-U.S. companies, potentially boosting demand. While pressure can be seen in Global prices as the government of India is implementing definitive anti-dumping duties upon aluminium radiators and components imported from the People’s Republic of China. The announcement of same was made late last week by the DGAD.

The order states that aftermarket radiators and components imported from their northern neighbor have been shipped in at rates below that of the ordinary market value, harming domestic producers of such radiators. In order to mitigate the injury above, Indian customs officials will begin assessing a duty of US22.89 per unit entering the country from China.

The duty will run for the next five years unless the Indian government chooses to amend or revoke the order at a later date. Technically market is under fresh buying as market has witnessed gain in open interest by 20.48% to settled at 2088 while prices up 1.05 rupees, now Aluminium is getting support at 121.6 and below same could see a test of 120.8 level, And resistance is now likely to be seen at 122.8, a move above could see prices testing 123.2.

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Suhani Verma

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