Aluminium settled flat as the spotlight returned to oversupply and expectations of rising output in top producer China. Stocks of aluminium in LME registered warehouses have fallen more than 25 percent since March to 2.12 million tonnes, which has tightened the LME marketIn reality, however, supplies are abundant and global inventories are estimated at about 15 million tonnes. China accounts for more than half of global production estimated this year at around 59 million tonnes. The German economy will lose some steam in the second half of the year after its robust performance in the first half, the Economy Ministry said, putting a damper on growth hopes after better-than-expected economic data. China hopes to boost private investment by improving financial services for small enterprises, its powerful state planner said in a document. Several voting Federal Reserve policymakers judged a rate hike would be warranted "relatively soon" if the U. S. economy continued to strengthen but doubts on inflation remained, according to the minutes of the Fed's September policy meeting released on Wednesday. China's economy performed better than expected in the third quarter and the country's debt risks are under control, Premier Li Keqiang said. In news, Chinese banks are stepping up lending to midsize metals traders in Singapore, pushing into a gap in the market as U. S. regulations and fading appetite for risk drive Western rivals to focus on larger commodity merchants, metals industry sources said. Technically market is under fresh buying as market has witnessed gain in open interest by 4.41% to settled at 3997 while prices up 0.1 rupee, now Aluminium is getting support at 111.7 and below same could see a test of 111.4 level, And resistance is now likely to be seen at 112.4, a move above could see prices testing 112.8.

Trading Ideas:

Aluminium trading range for the day is 111.4-112.8.

Aluminium settled flat as the spotlight returned to oversupply and expectations of rising output in top producer China.

Stocks of aluminium in LME registered warehouses have fallen more than 25 percent since March to 2.12 million tonnes, which has tightened the LME market

In reality, however, supplies are abundant and global inventories are estimated at about 15 million tonnes.