Aluminium slid to its lowest in nearly a month on worries about oversupply after a rise in output from top producer China and heavy flows into LME warehouses in Asia. Total Chinese production in September was 2.75 million tonnes, up from 2.713 million tonnes in August, data from the International Aluminium Institute (IAI) showed. At the same time, the London Metal Exchange reported that 77,075 tonnes of aluminium had arrived at Asian warehouses over two days, largely in South Korea. Last year loss-making smelters in top aluminium producer China shut millions of tonnes of capacity, but prices surged nearly a fifth from a low in January to a 13-month peak in August. Aluminium stocks at three major Japanese ports stood at 286,500 tonnes at the end of September, down about 6 percent from the previous month, trading house Marubeni Corp said. The second-largest aluminium producer in China, Chalco accounts for just under a quarter of the country's alumina output and over 10 percent of its aluminium output. The global market has been plagued by oversupply for the past five years, depressing prices and hurting producers' profits. Aluminium smelters in China, the world's top producer and consumer of the metal, cut output late last year, reducing supply in the hope of supporting prices. Technically market is under fresh selling as market has witnessed gain in open interest by 3.44% to settled at 2859 while prices down -0.75 rupee, now Aluminium is getting support at 107.1 and below same could see a test of 106.3 level, And resistance is now likely to be seen at 108.7, a move above could see prices testing 109.5.

Trading Ideas:

Aluminium trading range for the day is 106.3-109.5.

Aluminium dropped on worries about oversupply after a rise in output from top producer China and heavy flows into LME warehouses in Asia.

Aluminium stocks at three major Japanese ports stood at 286,500 tonnes at the end of September, down about 6 percent from the previous month.

The global market has been plagued by oversupply for the past five years, depressing prices and hurting producers' profits.