On Monday, December 20, Aluminum Mini Futures dropped by -2 percent to stand at 216.15 as the COVID-19 pandemic scenario remained depressing, and the omicron version was discovered in many locations, which alarmed the market. Aluminium supply remained low, and strong downstream demand continued to push down societal inventories of aluminium ingots. SHFE aluminium, on the other hand, has lost its upside momentum due to a slowing drop in aluminium ingot inventories and declining alumina prices. The International Aluminium Institute (IAI) reported that global primary aluminium output declined 0.22 percent year-on-year in November to 5.497 million tonnes.
According to the IAI, Chinese output fell to 3.16 million tonnes in November 2021 from 3.207 million the previous month. China's aluminium imports set an annual high with a month to spare this year, according to customs statistics, as domestic smelter power consumption limitations support demand for the foreign metal.
Unwrought aluminium and products arrivals were 397,915 tonnes in November, up 34% from 297,043 tonnes in October and up 109.3 percent year over year. This was the biggest monthly amount since August 2020, bringing the total for the first 11 months of the year to 2.97 million tonnes, surpassing the previous yearly high of 2.7 million tonnes set in 2020.
Technically, the market is in long liquidation, with open interest down by 21.23 percent to come in at 1484 rupees, and prices down by -4.4 rupees. Now, Aluminium is getting support at 214.8, and a move below that could see prices test 213.3 levels, while resistance is now likely to be seen at 219, and a move above that could see prices test 221.7.
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