Aluminium settled flat as aluminum inventories begin to rise due to release from new and restarted capacity and the off-season. An industry group in China said that the country aims to boost aluminum usage by almost 20 percent in the next three years. Federal Reserve chairwoman Janet Yellen said that the argument for another rate hike “has strengthened in recent months” during her speech in Jackson Hole, Wyoming, which led to wild fluctuations in commodity and equity markets and a weakening of the dollar. Yellen’s assessment is congruent with several of her colleagues including vice chair Stanley Fischer and signals that the policy-board is growing more comfortable with either a hike in September or December. Despite second-quarter GDP growth at a measly 1.1 percent, a strong housing recovery and consistently expanding labour market has alleviated concerns over a recession following the UK referendum vote to leave the eurozone. Aluminium LME stocks were down 7,425 tonnes to 2,246,350 tonnes. Cancelled warrants, however, were 9,925 tonnes higher at 926,700 tonnes after 14,450 tonnes of metal was freshly cancelled in Vlissingen and 2,900 tonnes in Rotterdam. In data EU M3 money supply disappointed at 4.8 percent and private loans were as expected at 1.8 percent. Aluminum consumption rose from 3.4 million metric tons in 2000 to 31 million tons last year -- but production capacity increased almost 14-fold, to 36 million tons. LME on-warrant primary aluminum inventories have fallen to their lowest level since 2008. Technically market is under fresh buying as market has witnessed gain in open interest by 8.4% to settled at 1935, now Aluminium is getting support at 109.1 and below same could see a test of 108.5 level, And resistance is now likely to be seen at 110.2, a move above could see prices testing 110.7.

Trading Ideas:

Aluminium trading range for the day is 108.5-110.7.

Aluminium settled flat as aluminum inventories begin to rise due to release from new and restarted capacity and the off-season.

An industry group in China said that the country aims to boost aluminum usage by almost 20 percent in the next three years.

LME on-warrant primary aluminum inventories have fallen to their lowest level since 2008.