Aluminium settled up 1.31% at 108.15 as support seen after LME Aluminium skated 1.9 per cent higher to end at $US1631 a tonne as US stock market rebounded and the US dollar index fell. While China's aluminium exports dropped again, after global premiums collapsed this year, making shipments to global markets less competitive. Global prices had been depressed by a flood of semi-manufactured exports out of the country. Market sentiment also brightened after data showed German exports and imports hit record highs in July and the euro zone economy grew faster than expected in the second quarter. While on the economic front, Chinese exports declined for the second straight month in August even after the devaluation of its currency and successive interest rate reductions. Imports also logged a double-digit decline, signaling some weak domestic demand. China's exports fell 5.5 percent year-on-year in August following the prior month's 8.3 percent decrease. Consequently, China's trade balance showed a surplus of $60.24 billion in August, well above the expected level of $48 billion. Eurozone economy grew more than initially estimated in the second quarter as strong exports offset a decline in investment. However, some believe the recent uptick in prices may not last if the US Federal Reserve decides to raise the interest rates. Moreover, China's overall imports declined far more than expected in August, stoking fresh concerns that China's economy may be slowing more sharply than expected. Technically market is under fresh buying as market has witnessed gain in open interest by 0.06% to settled at 3194 while prices up 1.4 rupee, now Aluminium is getting support at 106.7 and below same could see a test of 105.3 level, And resistance is now likely to be seen at 108.9, a move above could see prices testing 109.7.

Trading Ideas:

Aluminium trading range for the day is 105.3-109.7.

Aluminium prices ended with gains as market sentiment improved as global stocks markets rose.

China's aluminium exports dropped again, after global premiums collapsed this year, making shipments to global markets less competitive.

Data showed that China's trade surplus widened to $60.2 billion last month from $43.0 billion in July.