Yesterday closed 1.56% higher at 201.6 as supply concerns mounted on speculation of wider production cuts in China. Almost half of the EU’s aluminum and production capacity “has already gone offline due to the power crisis.” Improved demand prospects from the real estate sector also lifted sentiment, with property giant China Evergrande Group announcing it would restart frozen construction projects, and hoping for more supportive policies in China, according to data from seven major China’s zinc ingot inventories in the markets as of September 9 totaled 98,200 million tonnes, down by 1,400 million tonnes from last Friday and 12,100 million tonnes from the previous week.
In the Shanghai market, the arrivals of zinc ingots transferred from Guangdong were still low during the Mid-Autumn Festival holiday as most of them were sent to the Ningbo market. Also, due to high premium in Shanghai, downstream buyers were not proactive in taking the cargo. So, inventory in Shanghai accumulated a bit over the weekend. It is expected that zinc ingots will arrive from Guangdong in the coming two days. In Tianjin, some downstream enterprises restocked before the Mid-Autumn Festival holiday, while zinc ingots sent to downstream enterprises from other regions also arrived.
Technically the market is under short covering as the market closed with a fall of -20.33 % in open interest at 4239, while the price is at Rs 3.1, now aluminum is finding support at 199.7 and below it at 197.7 levels. Testing can be seen, and resistance is now likely to be seen at 202.8, a move above could see prices testing 203.9.
# Aluminum trading range for the day is 197.7-203.9.
# Aluminum prices rise on speculation of widespread production cuts in China as supply worries rise
#PBOC keeps one year MLF rate constant at 2.75%
China ’s Yunnan will extend electricity ban on aluminum producers.