Aluminium Dips 0.1% to 204.9 as Investors Take Profits Post Real Estate ‘White List’ Surge


Aluminium prices saw a slight decrease of -0.1%, ending at 204.9, as investors booked profits after prices surged due to the introduction of a “white list” for real estate and the easing of purchase limitations in Guangzhou, Suzhou, or Shanghai, which greatly improved market sentiment.

China’s imports of unwrought aluminium more than doubled in 2023 compared to the previous year, hitting the second-highest yearly total since the century’s beginning. Imports of primary metals increased to 1.54 million metric tonnes in 2022 from 668,000 tonnes in 2022. And narrowly missing the record 1.58 million tonnes in 2021.

In January 2024, the official NBS Manufacturing PMI for China increased marginally to 49.2. Which was in line with market expectations but represented the fourth consecutive month of declines in factory activity.

The slow recovery from property weakness, deflationary risks, and growing global headwinds are blamed for this contraction. In the meantime, January saw a slight increase in the NBS Non-Manufacturing PMI in China to 50.7, marking the 13th consecutive month that services activity has increased.

Due to sluggish demand in the manufacturing and construction sectors. Japan’s imports of primary aluminium decreased by 26% to 1.03 million metric tonnes in 2023. The lowest amount since at least 1986.

Technically speaking, the aluminium market is seeing new sales, as evidenced by the 5.66% rise in open interest that settled at 3865. Right now, 204.2 is the support level for aluminium prices; a breach below that could test 203.3 levels. A move above is expect to provide resistance at 206, and a test of 206.9 could follow.