Aluminium on MCX settled down -0.78% at 114.65 on profit booking after a tightening U. S. presidential race sparked a bout of risk aversion. Prices for the metal remained benefited in recent session from shortage fears after stockpiles slipped to 12-year lows. LME aluminium stocks fell 3,200 tonnes to 2,137,350 tonnes but cancelled warrants jumped 6,025 tonnes, a move centered on Asia. China will face relatively large downward pressure on foreign trade in the fourth quarter, with uncertainties continuing into 2017, the commerce ministry said. The government will continue to implement policies to promote trade growth, the ministry said in a statement on its website. European demand for rolled aluminum products remains firm despite the region's sluggish economic growth, the European head of U. S.-based Novelis, the world's largest rolled aluminum product producer, told. Novelis raised its recycled aluminum content in product production from 33 percent in 2011 to 53 percent in fiscal year 2016. With aluminum prices still generally below first-half 2015 levels, some scrap merchants find it not worthwhile to collect old metal. South Korea's aluminum premiums rose $2/mt week on week to be assessed at $67-$70/mt plus LME cash, CIF Busan, up from $65-$68/mt last week. Most of the support came from China, which is importing P1020 following a dramatic surge in domestic aluminum prices in the last two weeks. On average, China has been paying premiums of $85-$90/mt CIF Shanghai for imported metal, sources said. Technically market is under long liquidation as market has witnessed drop in open interest by -2.54% to settled at 6481 while prices down -0.9 rupee, now Aluminium is getting support at 113.7 and below same could see a test of 112.8 level, And resistance is now likely to be seen at 115.3, a move above could see prices testing 116.

Trading Ideas:

Aluminium trading range for the day is 112.8-116.

Aluminium prices dropped on profit booking after a tightening U. S. presidential race sparked a bout of risk aversion.

Prices for the metal remained benefited in recent session from shortage fears after stockpiles slipped to 12-year lows.

LME aluminium stocks fell 3,200 tonnes to 2,137,350 tonnes but cancelled warrants jumped 6,025 tonnes, a move centered on Asia.