01 JANUARY 2014www.commodityonline.com
India aluminium futures may trade 110-113.6 range
Edited by : AL CIRCLE
2 min read
Aluminium settled up at 111.35 rallied as signs of a strengthening US economic recovery prompted traders to buy industrial metals. Manufacturing in the U.S. continued to expand this month, a separate survey showed before data on Jan. 2. The nation ranked second globally after China among consumers of aluminum in 2012, according to researcher CRU. LME Aluminium prices to gradually rise next year to as high as $2,300 a tonne in the fourth quarter, on the back of strong demand in Asia and active financial deals.
LME aluminium prices have lost almost 14% this year to trade close to $1,800 a tonne on Friday and Marubeni forecast they will be between $1,950-2,300 in the fourth quarter next year, moving up from an expected $1,750-1,950 range in the first quarter. Aiming to appease critics of its global storage network, the LME in November slashed maximum wait times for metal, boosted its powers to act against market abuse and said it would review its agreement with warehouse owners. But use of material for collateral in financing deals are persistent, squeezing availability of the metal and lifting premiums - or costs to get metal out of storage - in the United States and Europe. Japan's aluminium premiums for January-March shipments were mostly set at $255 per tonne, matching a record high hit in 2012, on strong demand and high overseas rates.
Technically market is under fresh buying as market has witnessed gain in open interest by 56.57% to settled at 1442 while prices up 0.2 rupee, now Aluminium is getting support at 110.8 and below same could see a test of 110 level, and resistance is now likely to be seen at 112.6, a move above could see prices testing 113.6.
ALUMINIUM
--Aluminium trading range for the day is 110-113.6.
--Aluminum touched an eight-week high on LME as signs of a strengthening U.S. economic recovery prompted some traders to buy industrial metals.
-- Global unwrought aluminium stocks totalled 1.133 million tonnes in November, up from a revised 1.098 million tonnes in October.
--Aluminium daily stocks at Shanghai exchange came down by 25 tonnes.
--Warehouse stock for Aluminium at LME was at 5464700mt that is down by -3250mt.
LME aluminium prices have lost almost 14% this year to trade close to $1,800 a tonne on Friday and Marubeni forecast they will be between $1,950-2,300 in the fourth quarter next year, moving up from an expected $1,750-1,950 range in the first quarter. Aiming to appease critics of its global storage network, the LME in November slashed maximum wait times for metal, boosted its powers to act against market abuse and said it would review its agreement with warehouse owners. But use of material for collateral in financing deals are persistent, squeezing availability of the metal and lifting premiums - or costs to get metal out of storage - in the United States and Europe. Japan's aluminium premiums for January-March shipments were mostly set at $255 per tonne, matching a record high hit in 2012, on strong demand and high overseas rates.
Technically market is under fresh buying as market has witnessed gain in open interest by 56.57% to settled at 1442 while prices up 0.2 rupee, now Aluminium is getting support at 110.8 and below same could see a test of 110 level, and resistance is now likely to be seen at 112.6, a move above could see prices testing 113.6.
ALUMINIUM
--Aluminium trading range for the day is 110-113.6.
--Aluminum touched an eight-week high on LME as signs of a strengthening U.S. economic recovery prompted some traders to buy industrial metals.
-- Global unwrought aluminium stocks totalled 1.133 million tonnes in November, up from a revised 1.098 million tonnes in October.
--Aluminium daily stocks at Shanghai exchange came down by 25 tonnes.
--Warehouse stock for Aluminium at LME was at 5464700mt that is down by -3250mt.
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