Aluminium prices dropped as pressure seen due to profit booking after LME stocks rose. The demand picture in Europe also brightened. Euro zone business activity expanded the most in nearly a year in November, stirring some optimism that economic momentum is picking up again. In news, China exported 350,000 tonnes of aluminium in October, up 6.6 percent on year, customs data showed. Exports of unwrought copper and products were up over 110 percent on year to 22,909 tonnes. According to the minutes of the US Federal Open Market Committee's November meeting, an imminent increase in interest rates remains on the cards. Market participants now see a 93.5% chance of the Fed lifting rates in December, according to the CME's FedWatch tool. LME aluminium stocks rose 900 tonnes to 2,137,200 tonnes and cancelled warrants fell 4,175 tonnes to 782,025 tonnes. The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminum market has recorded a marginal deficit during the initial nine months of the year. As per the report, the market reported a deficit of 806,000 tons when matched with the deficit of 550,000 reported for the entire year 2015. The production of primary aluminum has dropped by 560,000 tonnes during the nine-month period from January to September this year. The total reported stock of metal declined by 115,000 tonnes during the month of September this year. Technically now Aluminium is getting support at 120.4 and below same could see a test of 119.7 level, And resistance is now likely to be seen at 122.1, a move above could see prices testing 123.1.

Trading Ideas:

Aluminium trading range for the day is 119.7-123.1.

Aluminium prices dropped as pressure seen due to profit booking after LME stocks rose.

In news, China exported 350,000 tonnes of aluminium in October, up 6.6 percent on year, customs data showed.

WBMS indicates that global primary aluminum market has recorded a marginal deficit during the initial nine months of the year.