Aluminium On MCX Settled Down -0.29%

Aluminium on MCX settled down -0.29% at 120.6 on profit booking despite China has seen increased demand for imported aluminium in the past month on the widening arbitrage between the LME aluminium price and China's spot market price. The arbitrage window between the LME and SHFE aluminium prices opening briefly in the week of October 24, and, as a result, stocks in bonded warehouses in China decreased, and imports of seaborne aluminium were lifted.

Some big aluminium producers seek a premium of $95-$110 per tonne from Japanese buyers for primary metal shipments in the January to March period, up 27-47 percent from the previous quarter, five sources involved in pricing talks said. Japan is Asia's biggest importer of the metal 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. Any increase in the quarterly premiums would mark the first rise in three quarters, and reflect tightening supply, although buyers said the initial offers were too high, the sources said.

For the October-December quarter, Japanese aluminium buyers agreed to pay a premium of $75 a tonne for the metal, down 17 percent to 19 percent from the prior quarter, on softer spot premiums amid a supply glut. Aluminium stocks at three major Japanese ports fell 2.9 percent in October from the previous month to 278,200 tonnes, trading house Marubeni Corp said.

Technically market is under long liquidation as market has witnessed drop in open interest by -18.16% to settled at 2308 while prices down -0.35 rupee, now Aluminium is getting support at 119.6 and below same could see a test of 118.5 level, And resistance is now likely to be seen at 121.3, a move above could see prices testing 121.9. 

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Suhani Verma

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