Fresh selling seen in aluminium, down at 103.25

Aluminium settled down -1.01% at 103.25 as prices remains under pressure from oversupply, especially from China, but nearer term tightness has emerged. China's economic growth will be largely stable in the third quarter as the impact from a stock market plunge will be limited, a government body said. The U.S. economy expanded more than previously estimated in the second quarter, backing the case for an interest rate rise before year end, raising headwinds for commodities by eroding purchasing power for buyers holding other currencies.

The aluminum exports from the US and Canada declined sharply by 23.5% during the initial seven-month period of the year. The exports totaled 1.671 billion lb during this period. Meantime, imports surged higher by 19.3% year-on-year to 3.563 million lb. The above figures are in accordance with the latest trade data released by the Aluminum Association. As per trade data, the aluminum demand in the US and Canada were up by 2.4% during Jan-July ’15. The demand, inclusive of domestic producer shipments plus imports, totaled 15.158 billion.

The demand for semi-fabricated mill products were up by 7.2% over the previous year to total 10.927 billion lb. Meantime, apparent aluminum consumption during the seven-month period totaled 13.487 billion lb, up by 6.9% when matched with the previous year. Technically market is under fresh selling as market has witnessed gain in open interest by 0.35% to settled at 2602 while prices down -1.05 rupee, now Aluminium is getting support at 102.8 and below same could see a test of 102.3 level, and resistance is now likely to be seen at 104.1, a move above could see prices testing 104.9.