Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Aluminium settled down -1.04% at 118.40 as aluminium prices continued to fall on oversupplies, and the industry are trying to take further curtailments to tackle overcapacity. Also RUSAL plans to accelerate cuts at its least-efficient smelting facilities after having reduced output by around 100,000 tonnes in the first half, while on the demand side the situation remains positive, particularly in construction and transportation industries in China, South East Asian countries such as Thailand and Indonesia, and Middle East, RUSAL said. While Leading aluminium producer China Hongqiao Group Ltd. is negotiating with Indonesian government to allow it export bauxite with tax exemptions. Hongqiao Group, which hopes to export 10-12 million tons of bauxite from Indonesia over the next 5-8 years, has commenced negotiation with the Indonesian government with agreement yet to be reached, ceo Zhang Bo said earlier this month. Indonesia announced in May 2012 that it would impose an export tariff on 14 types of ore, including bauxite, which is used for producing alumina, the primary raw material of aluminium products. Now Market players remained cautious ahead of the minutes of the Fed's July meeting, due out on Wednesday, for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program. U. S. data on initial jobless claims and the housing sector later in the week will also be closely watched. Traders have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Technically market is getting support at 116.7 and below same could see a test of 114.8 level, And resistance is now likely to be seen at 120, a move above could see prices testing 121.4.