Aluminium settled up by 0.35% at 115.15 with a stockpile in the Chinese market leading the charge, along with concern over an available supply shortage. Chinese road regulations as the main cause, as new weight limitations on trucks have delayed aluminum deliveries. To combat overloaded trucks and vehicle accidents, the country has limited the maximum weight to 49 tons, down from 55 tons. The enforcement began on September 21, and led to spikes in physical aluminum prices in regional markets in the following weeks. These shortage concerns, combined with improving China demand and higher energy prices, have led some speculators to jump into the market and send aluminum prices higher. LME aluminium stocks fell 5,275 tonnes to 2,125,800 tonnes, while cancelled warrants rose 3,100 tonnes – 8,375 tonnes were freshly cancelled in Kaohsiung. Markets are attempting to strike a balance between a Clinton win and the possibility of a sell-off in commodities if Trump is elected. Sentiment was mixed on whether the hours leading up to the U.S. election on Nov. 8 will spur or subdue trading activity. Aluminum stocks reported in China have been dropping, as the metal is trapped in production hubs by the limited availability of trucks. Reported aluminum stocks fell 21% from 327,100 tons in mid-September to 258,700 tons by the end of September. A run-up in coal prices this has sparked speculation over higher Technically market is under short covering as market has witnessed drop in open interest by -8.15% to settled at 6062 while prices up 0.4 rupee, now Aluminium is getting support at 114.1 and below same could see a test of 113 level, And resistance is now likely to be seen at 116.4, a move above could see prices testing 117.6.

Trading Ideas:

Aluminium trading range for the day is 113-117.6.

Aluminium prices gained with a stockpile in the Chinese market leading the charge, along with concern over an available supply shortage.

Chinese road regulations as the main cause, as new weight limitations on trucks have delayed aluminum deliveries.

These shortage concerns, combined with improving China demand and higher energy prices, have led speculators to jump into market.