Aluminium On MCX Settled Up 2.59% At 128.80

 
Aluminium on MCX settled up 2.59% at 128.80 tracking firmness from LME aluminium hovered close to three-year highs, as prices burst through the psychological $2,000 level to top out at $2,035, the highest since Nov. 2014 in a record day for turnover. Prices rallied after China's Shandong province has ordered 3.21 million tonnes of aluminium smelting capacity to be shut in the world's top producer of the metal, more than previously expected, as Beijing intensifies efforts to curb pollution in its bloated heavy industries.

The US Commerce Department said on Tuesday it made a preliminary finding that imports of aluminium foil from China are subsidized, and it imposed countervailing duties ranging from 16.56 percent to 80.97 percent. Sentiments still remain firm as China's new 'Environmental Protection Tax Law' is due to come in on 1 January next year. The move marks a structural change in China policy and tolerance towards polluting industries and is likely to result in marked price rises for many metals.

Meanwhile China exported 440,000 tonnes of aluminium in July, customs data showed, down 4.3 percent from June but up 12.8 percent from July last year. In the week ahead, investors will be looking ahead to Friday’s US inflation figures to gauge whether the economy is strong enough for the Fed to stick to its planned tightening path. Appearances by a number of Fed speakers will also be in the spotlight.

Technically market is under fresh buying as market has witnessed gain in open interest by 38.81% to settled at 4768 while prices up 3.25 rupees, now Aluminium is getting support at 126.3 and below same could see a test of 123.7 level, And resistance is now likely to be seen at 130.4, a move above could see prices testing 131.9.
 
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Suhani Verma

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