Aluminium on MCX settled down -0.84% at 124.6 on profit booking tracking LME prices fell 0.5 percent amid rise in Shanghai stocks after prices seen supported after news that Xinjiang Jiarun Resources shut down 200,000 mt of disqualified aluminium capacity. Prices seen supported in the week as supporting prices was the inventory draws from London Metal Exchange warehouses, but a rise in Shanghai stocks on Friday limited this bullish sentiment. Still, overall LME holdings are sitting at just 1.7 million tons. Inventories in Shanghai, meanwhile, are at their highest in about a year. Meanwhile, China’s total March aluminium production rose to 2.707 million tons from 2.534 million in February. Aluminium production typically picks up in pace as spring approaches, tracking the seasonal pick-up in construction demand. The U. S. International Trade Commission has made affirmative determinations in its preliminary phase anti-dumping and countervailing duty investigations of aluminium foil from China, the agency said. U. S. aluminium foil producers have filed petitions with their government accusing Chinese manufacturers of dumping the product in the United States, the first such case since the inauguration of U. S. President Donald Trump. Diversified miner Vedanta said its 500,000 tonne aluminium smelter in the eastern state of Odisha was hit by a power outage this week that damaged over one-third of its processing capacity. Aluminium production is a highly power intensive activity and requires constant supply of power 24 hours a day. Technically market is under long liquidation as market has witnessed drop in open interest by -30.29% to settled at 1261 while prices down -1.05 rupees, now Aluminium is getting support at 124.1 and below same could see a test of 123.4 level, And resistance is now likely to be seen at 125.9, a move above could see prices testing 127.

Trading Ideas:

Aluminium trading range for the day is 123.4-127.

Aluminium dropped on profit booking tracking LME prices fell 0.5 percent amid rise in Shanghai stocks.

LME holdings are sitting at just 1.7 million tons and inventories in Shanghai, meanwhile, are at their highest in about a year.

Market needs to closely watch the implementation of crackdowns on illegal aluminium projects.