Aluminium settled down -0.34% at 101.45 as surging output overshadowed news that China's exports of aluminium products stalled in July as LME prices and premiums ruptured. Adding to the China gloom, data showed growth in the U. S. manufacturing sector slowed unexpectedly to its weakest pace in almost two years in August. The US dollar lost ground due to expectations that the US Fed will postpone timing for interest rate, limited the downside. On the economic front, the manufacturing sector in China continued to struggle in August as the contraction accelerated, a preliminary survey from Caixin showed, with a Performance of Manufacturing Index score of 47.1. That's down from 47.8 in July, and it represents a 77-month low. Eurozone consumer confidence strengthened for the first time in five months during August, preliminary data from the European Commission revealed. The flash consumer confidence index for the euro area rose to -6.8 from July's -7.1. Germany's private sector grew at the fastest pace in four months in August, flash survey data from Markit revealed Friday. The flash composite output index rose to 54 in August from 53.7 in July. The reading reached a 4-month high in August. German consumer sentiment is set to drop unexpectedly in September, as economic and income expectations floundered despite Greece reaching an agreement on a controversial debt deal. The forward-looking consumer sentiment index fell to 9.9 in September from 10.1 in August, survey data from market research group GfK showed. Technically market is under long liquidation as market has witnessed drop in open interest by -1.88% to settled at 5702, now Aluminium is getting support at 100.8 and below same could see a test of 100 level, And resistance is now likely to be seen at 102.5, a move above could see prices testing 103.4.

Trading Ideas:

Aluminium trading range for the day is 100-103.4.

Aluminium prices dropped tracking 6-year low on LME on worries over surging output.

The manufacturing sector in China continued to struggle in August as the contraction accelerated, a preliminary survey from Caixin showed.

Aluminium weekly stocks at Shanghai exchange came down by 643 tonnes.