ALUMINIUM SNAPPED EARLIER SESSION GAINS AND TUMBLED AT MCX
DATE: 26/04/2012
Aluminium snapped five consecutive session gains and shed by 0.5% or Rs 0.55 to Rs 107.2 per kg with its high at Rs 108 per kg and low at Rs 107 per kg on Wednesday, 25th April. Aluminium was the only metal that fell among all the other base metals. Aluminium, which was in the downtrend from March 2012, began to rise during the last week and reached near 3-week's high. But, the weakness in the global markets led the metal to end in negative territory. The contract was trading below 27-day EMA and RSI stood at 51.44.
At LME, Aluminium buoyed by 0.5% at $2080 per tonne on Wednesday boosted by the Federal Reserve affirmation of keeping interest rates near to zero and further easing if economy weakens. However, the physical demand for the metal remained weak due to fall in Chinese imports and the huge one-day rise in aluminium stockpiles by 9325 tonnes to 5055675 tonnes at LME and curbed huge gains in the metal.
Aluminium at MCX is likely to find support at Rs 106.2 per kg to Rs 105.6 per kg and resistance at Rs 108 per kg and Rs 108.7 per kg on Thursday, 26th April.
China primary Aluminium imports dropped by 15% to 63,634 tonnes in March 2012 on m-o-m basis while it gained 177% on y-o-y basis, as per the Administration of Chinese customs.
Chinese trade data also reported that Chinese bauxite imports in March soared to a record high of 5.3 million tonnes, up 50% in March on year-on-year with much of the increase from Indonesia, which suggests that bauxite exports and Chinese imports from Indonesia are being rushed out ahead of a potential export ban/tax on 6th May 2012.
China primary Aluminium exports rose by 91% to 12,288 tonnes in March 2012 on m-o-m basis and it also registered a 176% rise in its exports on y-o-y basis from 4446 tonnes in March 2011.
POWERED BY: COMMODITY INSIGHTS
No comments:
Post a Comment