KediaCommodity offers Commodity Trading Tips for Aluminium

Aluminium yesterday traded with the negative node and settled -0.05% down at 109.8 declined to a two-week low after Socialist Francois Hollande was elected president of France, prompting concerns that austerity efforts may be derailed, and US payrolls rose by the least in six months. NALCO has also raised aluminium prices by INR 1,500 per tonne across all products in tandem with overseas markets. The base price of standard aluminium ingots after the latest revision increased to INR 138,700 per tonne in the domestic market. In the aluminium sector, conditions were likely to remain challenging, even if producers cut supply further, with Aluminum Corp of China and Australia's Alumina Ltd most at risk from weak prices, among the producers S&P rates.Rising fuel costs in Indonesia and Mongolia, rising electricity costs in China and tight labor supply and energy cost increases in Australia could dent the prospects of miners across the region. "One of the key risks we see for the mining sector in 2012 is the persistence of elevated input costs. The problem is more acute for Australia," S&P said. In yesterday's trading session aluminium has touched the low of 109.25 after opening at 109.65, and finally settled at 109.8. For today's session market is looking to take support at 109.4, a break below could see a test of 109 and where as resistance is now likely to be seen at 110.1, a move above could see prices testing 110.3.

Trading Ideas:

Aluminium trading range for the day is 109-110.3.

Aluminium declined to a two-week low after Socialist Francois Hollande was elected president of France

Base price of standard aluminium ingots after the latest revision increased to INR 138,700 per tonne in the domestic market

Aluminium daily stocks at Shanghai exchange came up by 649 tonnes