Fresh selling seen in aluminium, open interest up 1.96%

Aluminium settled down -0.2% at 100.35 even after Century Aluminium curtailed capacity at one of its four smelters. Prices also seen under pressure as the market focused on a growing supply glut due to surging exports from top producer China and high stocks. China's exports of primary aluminium rose to 20,412 tonnes in the first six months of the year, a surge of 66 per cent from the same period a year ago. But the more pressing worry is exports of semi-finished aluminium products, which at 2.22 million tonnes have jumped 44 per cent.

Stocks of aluminium in LME approved warehouses stand at around 3.4 million tonnes, but that does not include stocks held off exchange and by producers. Norsk Hydro, one of the world's biggest aluminium producers, last month estimated global inventories at about 14 million tonnes. In economic news, job growth in the U.S. slowed for the second consecutive month in July, a report from the Labor Department said Friday, with non-farm payroll employment rising by 215,000 jobs in July following an upwardly revised increase of 231,000 jobs in June and a jump of 260,000 jobs in May.

German exports decreased for the first time in five months in June and imports fell unexpectedly, preliminary figures from Destatis showed Friday. Exports dropped 1.0 percent month-on-month in June, reversing a 1.6 percent climb in the previous month. Technically market is under fresh selling as market has witnessed gain in open interest by 1.96% to settled at 7213 while prices down -0.2 rupee, now Aluminium is getting support at 99.9 and below same could see a test of 99.3 level, and resistance is now likely to be seen at 101.3, a move above could see prices testing 102.1.

Highlights:
--Aluminium trading range for the day was 99.3-102.1.
--Aluminium ended with small losses even after Century Aluminium curtailed capacity at one of its four smelters.
--Prices also seen under pressure as the market focused on a growing supply glut due to surging exports from top producer China and high stocks.
--China’s aluminum product shipments rose to a record in June, piling more pressure on global prices.