Aluminium yesterday traded with the range bound node and settled flat at 103.05 as China’s trade surplus fell from $317/mt to $251/mt in July, with export growth at 1.0% YoY and import growth at 4.7% YoY, both lower than market expectation. China's July trade data was worse than expected, and the falling import and export data means sluggish European and US markets have affected domestic trade conditions, weighing down base metals prices. According to China Customs, the annual rate of China's July imports rose 4.7%, compared to the forecast of 7.2%, and the previous data was 6.3%. China’s weak economic data weighed down LME prices. As economic data announced from many European countries were lower than market expectation, risk aversion sentient grew, sending the US dollar to close slightly higher. The upward trend of US dollar in the short term will weigh on base metal prices. The ECB cut economic growth forecast for 2013 recently, and China’s CPI hit a 30-month low in July. Meanwhile, transactions in spot market were quiet, and overall consumption was sluggish. In yesterday's trading session aluminium has touched the low of 102.85 after opening at 103.05, and finally settled at 103.05. For today's session market is looking to take support at 102.9, a break below could see a test of 102.8 and where as resistance is now likely to be seen at 103.2, a move above could see prices testing 103.3.
Aluminium trading range for the day is 102.75-103.25.
Aluminium settled flat as China’s trade surplus fell from $317/mt to $251/mt in July
China's July trade data was worse than expected, and falling import and export data weighing down prices
Aluminium weekly stocks at Shanghai exchange came up by 2399 tonnes
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