Aluminium is lifted by a weak dollar & tightening supplies

Aluminium settled up 2.86% at 109.55 prices rose to their highest in more than four months on Friday, lifted by a weak dollar, tightening supplies and expectations that economic recovery in top consumer China will help boost demand for industrial metals next year. China's economic growth is likely to come in at 7.6 percent this year, according to a cabinet report cited by the official Xinhua news agency, just above the government's target of 7.5 percent and slightly below last year's 7.7 percent. Its industrial output is likely to grow by about 9.8 percent in 2013, the Ministry of Industry and Information Technology said on Friday. LME Aluminium was the biggest percentage gainer, surging 3.1 percent to $1,810 a tonne.

As support seen after news that Indonesia will provide exemptions to its 2014 mineral export ban for firms that process ore domestically, its mining minister said on Friday, providing some potential relief for mining giants Freeport and Newmont. Trading volumes are expected to remain light, with many markets closed for the New Year’s holiday, reducing liquidity in the market and increasing the volatility. In the week ahead, the U.S. is to publish reports on pending home sales, consumer confidence and jobless claims, as investors attempt to gauge the strength of the world’s largest economy. Now Aluminium is getting support at 107.7 and below same could see a test of 105.8 level, And resistance is now likely to be seen at 110.7, a move above could see prices testing 111.8.

Trading Ideas:

--Aluminium trading range for the day is 105.8-111.8.

--Aluminium rose lifted by a weak dollar, tightening supplies and expectations that economic recovery in top consumer China will help boost demand for industrial metals next year.

--Total world aluminum inventories in November rose by 24,000 metric tons from the previous month to 2.172 million tons – IAI

--Japan's aluminium premiums for January to March shipments were mostly set at USD 255 per tonne, up at least 3% from the prior quarter and matching a 2012 record high.