Aluminium yesterday traded with the negative node and settled -1.45% down at 103.10 after the smart recovery seen from LME Aluminium which had fallen to a fresh two-year low for the fourth day in a row hitting $1,832.25 per tonne before settling at $1,845. Warehouse inventories saw their customary decline, falling a net 10,825 tonnes to 4,839,150 tonnes. Pessimism in the EU Summit going on to solve the region's debt crisis clouded overnight markets, dragging LME aluminum to a USD 33/mt or 1.76% loss when the light metal managed to recover slightly from a low of USD 1,837.3/mt to USD 1,843/mt. Aluminum was the worst performer among base metals on the London Metal Exchange. Metals trading should remain cautious today amid doubts on the EU stimulus package. Sources said that smelters can now maintain their production due to the subsidy. The subsidies are a temporary measure by the Henan government and that the allowances may be claimed back when smelters return to profit. In yesterday's trading session aluminium has touched the low of 102.9 after opening at 104.85, and finally settled at 103.1. For today's session market is looking to take support at 102.2, a break below could see a test of 101.3 and whereas resistance is now likely to be seen at 104.7, a move above could see prices testing 106.2.
Aluminium trading range for the day is 101.33-106.23.
Aluminium ended lower as pessimism in the EU Summit going on to solve the region's debt crisis clouded markets
Warehouse inventories saw their customary decline, falling a net 10,825 tonnes to 4,839,150 tonnes.
Western world unwrought aluminium stocks dropped to 1.430mt vs 1.453mt in May.
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