Aluminium yesterday traded up 0.45% at 100.65 as demand is strong despite record-high inventories of the metal, and will be further buoyed in coming years. A weak aluminum price outlook may lead to further cuts at high-cost Chinese aluminum smelters. US initial jobless claims jumped to 360,000 in the week ended May 11. The US posted a 1.1% growth in CPI in April, below expectations. These data helped reduce possibility of asset purchases cuts by the US Federal Reserve for the immediate term.  The US economic results announced yesterday were disappointing. The April housing starts fell 16.5% to 853,000, below market expectations, but building permits beat market estimate, up 14.3%. The labor market was disappointing. The latest initial jobless benefit claims rose to 360,000, above market expectations and higher than the previous data. The Philadelphia Fed manufacturing index decreased to -5.2 in May. Besides, the April consumer prices rose 1.1% on a yearly basis, well below market estimate and the previous data. The Eurostat reported March's trade balance fetched a surplus of 18.7 billion euros on a seasonally basis, showing that eurozone exports grew for a third consecutive month. In March, exports grew 2.8% from February's 0.2%, and imports fell 1%, down much from February's decline. Technically market is under fresh selling as market has witnessed drop in open interest by -3% to settled at 6761 while prices up 0.45 rupee, now Aluminium is getting support at 99.8 and below same could see a test of 99.1 level, And resistance is now likely to be seen at 101.08, a move above could see prices testing 101.5.

Trading Ideas:

Aluminium trading range for the day is 99.12-101.52.

Aluminium gained as demand is strong despite record-high inventories of the metal, and will be further buoyed in coming years

A weak aluminum price outlook may lead to further cuts at high-cost Chinese aluminum smelters

Aluminium daily stocks at Shanghai exchange came down by 794 tonnes