Aluminium settled down -0.35% at 100.55 dropped sharply in yesterday's session tracking weakness from LME aluminium prices which tumbled to six-year lows on Thursday as the market focused on a growing supply glut due to surging exports from top producer China and high stocks. Benchmark aluminium on the London Metal Exchange slid to $1,576 a tonne, the lowest since July 2009. The metal used in transport and packaging recouped some of the losses to close at $1,592.50, down 0.2 percent. China's exports of primary aluminium rose to 20,412 tonnes in the first six months of the year, a surge of 66 percent from the same period a year ago. But the more pressing worry is exports of semi-finished aluminium products, which at 2.22 million tonnes have jumped 44 percent. Also stocks of aluminium in LME approved warehouses stand at around 3.4 million tonnes, but that does not include stocks held off exchange and by producers. Norsk Hydro, one of the world's biggest aluminium producers, in a Reuters interview last month estimated global inventories at about 14 million tonnes. Investors will be eyeing U.S. nonfarm payrolls data due on Friday, with economists polled by Reuters predicting employment in July to have increased at the same pace as June's 223,000 rise. Technically market is under long liquidation as market has witnessed drop in open interest by -3.7% to settled at 7074 while prices down -0.35 rupee, now Aluminium is getting support at 99.7 and below same could see a test of 98.9 level, And resistance is now likely to be seen at 101.3, a move above could see prices testing 102.1.

Trading Ideas:

Aluminium trading range for the day is 98.9-102.1.

Aluminium dropped as the market focused on a growing supply glut due to surging exports from top producer China and high stocks.

Expansions in China’s aluminum market and flooding of Chinese aluminum semis into overseas market will pressure overseas aluminum market.

Aluminium daily stocks at Shanghai exchange came down by 475 tonnes.