Aluminium yesterday traded with the negative node and settled -0.54% down at 112 tracking LME aluminum closed down USD 25/mt or 1.1% at USD 2,254/mt after founding its low at USD 2,237/mt. The metal moved mainly against the US dollar index, which climbed but fell later.
Latest LME aluminum stocks surged 13,000 mt to 5,081,950 mt. While the Greek debt crisis has temporarily eased and US economic data is improving, worries towards US economic recovery stay. In addition, the euro has strengthened for 5 consecutive days against the US dollar.
LME aluminum to stay between USD 2,240-2,290/mt during today’s trading.
On March 20th, the People’s Bank of China released the banks macro-economic confidence index for 1Q was 40%, and the reading fell below 50% for two quarters in a row.
In other news, BHP Billiton said Iron Ore demand in China is slowing, leading to lower-than-expected export demand, and demand will wane further in the future.
The concerns over China’s slowing economy dominated market movements. The commodity market fell across the board, and LME metal prices closed lower on negative news.
The easing of Greek debt issues, however, should support the market to some extent.
For today's session market is looking to take support at 111.5, a break below could see a test of 111.1 and where as resistance is now likely to be seen at 112.6, a move above could see prices testing 113.2.
Trading Ideas:
Aluminium trading range for the day is 111.07-113.17.
Aluminium yesterday traded with the negative node and settled down tracking weakness in other base metals counter
The concerns over China’s slowing economy dominated market movements
Talks are under way to end three-month lockout of workers at Rio Tinto Alcan's giant Alma aluminum smelter
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