Aluminium prices were supported by lower inventory at LME accredited warehouses.
Aluminium prices were flat on June 9 on subdued global cues amid choppiness in the US dollar. In the domestic market, the base metal traded in a narrow range as participants raised their fresh bets as seen from open interest.
Aluminium delivery for June modestly fell Rs 0.10, or 0.05 percent, to Rs 191.70 per kg at 18:40 hours with a business turnover of 2,001 lots. The same for the July contract jumped Rs 0.15, or 0.08 percent to Rs 193.25 per kg with a turnover of 337 lots.
The value of June and July’s contracts traded so far is Rs 211.20 crore and Rs 8.11 crore, respectively.
MCX METLDEX rose 25 points, or 0.17 percent, at 15,070 at 18:43 hours. The index tracks the real-time performance of key base metals.
The momentum indicator Relative Strength Index (RSI) is at 48.12, which indicates mildly weak movement in prices.
Aluminium prices were supported by lower inventory at LME accredited warehouses. Since May’21, Aluminium inventories in the London Metal Exchange (LME) have plunged about 10 percent. LME Aluminium inventory as of June was 16,49,750 tonnes.
A gauge for US dollar, Dollar Index fell to 89.92 in the evening session against major rival currencies.
Yash Sawant, Research Associate, Angel Broking Ltd said, “The fall in inventory levels comes soon after China imposed stern energy consumption norms in order to tackle the severe pollution problem. After Inner Magnolia, even the Yunnan province which also accounts for about 10 percent of China's Aluminium output has directed the local metal producers to limit their electricity consumption to comply with China’s energy consumption targets for 2021.”
"Even the global Primary Aluminium output in April’21 stood at 5.56 million tonnes, down from a revised figure of 5.744 million tonnes reported in March’21. Limited output from major Aluminium producer China coupled with plummeting LME Aluminium inventories signal towards a tighter Aluminium market which might be supportive of the prices.
At 13:17 (GMT), the base metal price was up 0.28 percent, quoting at $2,456.75 per tonne in London.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited
MCX Aluminium June has been trading with a marginal sideways and bearish bias. The crossover of 50-SMA and 10-SMA was witnessed late during yesterday’s session suggesting a change in intraday trend. On the upside, resistance is at Rs 192.5- Rs 193.3 levels which could be tested and the market may fall after that.
MCX Aluminium is likely to trade in a range for the session with supports placed at Rs 189.70-Rs 187 whereas resistance is at Rs 192.70-Rs 194.30 levels.
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