Aluminium on MCX settled up 0.08% at 125.4 as prices recovered from lows as support seen after substantial increases in cancelled warrants. Prices also seen supported amid renewed calls for an appropriate response to overproduction in China’s aluminium sector. Total cancelled warrants are now their highest since July last year at 895,255 tonnes, of which almost 225,000 tonnes were booked this week. Cancellations account for 45.5% of the 1,964,600 tonnes of stocks. On- warrant or available metal at 1,069,375 tonnes is at its lowest since July 2008. Outside of the regional premium arbitrage and warehouse games, the flurry of cancellations has also created a bottleneck in PGS warehouses in Busan and Port Klang. Prior to the most recent removal orders, a queue of more than four months had developed in Busan and more than two months in Port Klang. Industry groups in the USA, Europe and Canada, including Rio Tinto and Alcoa, have submitted an open letter to G20 leaders in which they proposed that “response to China’s rising aluminium production” be discussed at the G20 summit. Existing home sales in the U. S. saw a sharp pullback in the month of February, according to a report released by the National Association of Realtors on. NAR said existing home sales tumbled by 3.7 percent to an annual rate of 5.48 million in February after jumping by 3.3 percent to a rate of 5.69 million in January. Technically market is under short covering as market has witnessed drop in open interest by -21.42% to settled at 1677 while prices up 0.1 rupees, now Aluminium is getting support at 124.6 and below same could see a test of 123.6 level, And resistance is now likely to be seen at 126.3, a move above could see prices testing 127.

Trading Ideas:

# Aluminium trading range for the day is 123.6-127.

# Aluminium prices recovered from lows as support seen after substantial increases in cancelled warrants.

# Prices also seen supported amid renewed calls for an appropriate response to overproduction in China’s aluminium sector.

# Total cancelled warrants are now their highest since July last year at 895,255 tonnes, of which almost 225,000 tonnes were booked this week.