Aluminum prices turned higher on Friday, after the commodity fell to a one-month low this week as investors pulled money out of the base metals. On Friday, aluminum was trading in the range of $1725 to $1746. The commodity is finding support at $1680 and meeting resistance at $1794.
Adding pressure to aluminum this week was a Reuters report that India’s National Aluminum Company will increase its aluminum output 3.5% in the year to March 2017, with output coming in at 385,000 tons as narrowing margins prompt the company to increase volumes to increase profits. Looking further forward, the company will boost its alumina output even more, targeting a 9.1% increase in the fiscal 2016/2017 year.
Aluminum prices garnered some strength along with the base metals complex earlier this week after China released some positive trade data; however, the ascent was limited by a climb in the US dollar, which put the dollar denominated commodity under pressure. The US dollar advanced this week as it is widely expected that the US Federal Reserve will increase interest rates when it meets next week.
Meanwhile, in aluminum company news Alcoa has asked its Japanese buyers on annual contracts to cancel December shipments following the power outage at its Portland smelter in Australia. On Dec. 6, when Alcoa last updated on the situation at the Portland Smelter the company noted that it was facing “substantial challenges” in restarting the mine since the December 1 power outage. Before the outage the mine was producing 26,000 mt/month of aluminum ingot. The smelter supplies aluminum to Japan, South Korea, Taiwan and other Southeast Asian countries.
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