Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 25 August 2014

Aluminium settled up 0.12% at 124.4 after stronger-than-expected housing data in the U. S., the second-largest consumer of the metal. The aluminum industry has closed or curbed output at more than 50 smelters outside of China since 2009 and global demand will exceed output by 579,000 tons this year and 619,000 tons in 2015. Aluminum buyers in Japan, Asia's largest importer, are set to agree on a record quarterly fee after lower output from Brazil deepened a global deficit. Aluminum imports by Japan expanded 18 percent to 846,871 tons in the first five months of 2014 from a year earlier, with purchases from Russia surging 79 percent to 123,665 tons, according to the Japan Aluminium Association. More than 100,000 tonnes of aluminium that had been jammed in a queue for delivery out of Vlissingen warehouses returned to stocks, which traders suggested was a party delivering against a short position. This has relaxed immediate supply stress in the LME aluminium forwards curve. Cash aluminium had traded this week at its narrowest discount of $1.25 against the benchmark since December 2012 but has since eased to $12. Business growth in China and across Europe slowed this month, surveys showed on Thursday, but U. S. activity picked up speed, leaving a mixed picture of global economic growth. U. S. home resales raced to a 10-month high in July and the number of Americans filing new claims for jobless benefits fell last week, signaling strength in the economy. Technically market is under short covering as market has witnessed drop in open interest by -1.01% to settled at 6182, now Aluminium is getting support at 124 and below same could see a test of 123.6 level, And resistance is now likely to be seen at 124.8, a move above could see prices testing 125.2.