Commodity Trading Tips for Aluminium by Kedia Commodity

Ajay Kumar Kedia 27 August 2013

Aluminium settled down -0.38% at 118.90 on profit booking as caution prevailed in the market early last week ahead of the release of minutes from the Fed's July policy meeting and HSBC China manufacturing PMI, prompting investors to book profits. The resulting increase in the US dollar and decline in US equities put pressure on base metals. However, the positive manufacturing data for China, US and euro zone helped base metals regain the earlier losses. But trading in spot markets was dampened with downstream buyers waiting on the sidelines. The tight raw material supply, tough environmental protection campaign, and unusually high temperature hindered production at lead smelters, keeping lead prices hovering at high levels. The tight raw material supply, tough environmental protection campaign, and unusually high temperature hindered production at lead smelters, keeping lead prices hovering at high levels. While Aluminum buyers in Japan, Asia's biggest importer, will probably win their first reduction in three quarters for fees they pay to producers after premiums in the U. S. and Europe slumped, three executives said. Premiums for the three months starting in October are likely to fall to the lowest level of the year from this quarter's $249 to $251 a metric ton over the London Metal Exchange cash price, said the executives, representing buyers and sellers. They asked not to be identified because the talks, which begin this week, are private. Technically market is under long liquidation as market has witnessed drop in open interest by -7.2% to settled at 1972 while prices down -0.45 rupee, now Aluminium is getting support at 117.4 and below same could see a test of 115.8 level, And resistance is now likely to be seen at 120.8, a move above could see prices testing 122.6.