KediaCommodity offers Trading Tips for Aluminium

Aluminium yesterday traded with the positive node and settled 0.67% up at 104.50 despite of Germany’s industrial output data which fell overnight and DBRS downgraded Spain and Italy’s credit rating, weighing on the euro. Investors are staying cautious as they are awaiting China’s CPI for July to be released on Thursday. Also there was a news that Three of China's biggest alumina producers are planning to invest at least $1 billion into bauxite mines and refineries in Indonesia to guarantee supplies of the aluminium raw materials under threat from new export taxes and a 2014 export ban. Indonesia supplied about 80% of the 25.42mt of bauxite China imported in the first half of the year, but exports fell sharply in June after the Indonesian government imposed a 20% export tax on minerals in May. Indonesia is now requiring metal ore exporters to submit plans for smelters, ahead of a ban on all mineral ore exports in 2014. Bauxite is the ore used for the production of alumina, which is the main material for primary aluminium. Bosai Minerals is planning to invest about $1 billion in an alumina project in Indonesia which would include a bauxite mine, a 2mtpy alumina refinery, a power plant and a port, said a company official with direct knowledge of the plan. For today's session market is looking to take support at 103.7, a break below could see a test of 102.9 and where as resistance is now likely to be seen at 105.1, a move above could see prices testing 105.7.

Trading Ideas:

Aluminium trading range for the day is 102.93-105.73.

Aluminium gained but Germany’s industrial output fell and DBRS downgraded Spain credit rating weighed on prices

S&P put Greek credit rating outlook into negative and pointed out that the country needed more aid.

Aluminium daily stocks at Shanghai exchange came down by 50 tonnes