Aluminium prices fell -1.04% yesterday, setting at 199.6, as mixed factors influenced market sentiment. Some support was given by China’s attempts to calm its markets and lower its stock of metals. But gains were constrained by a strong dollar.
China official PMI data showed a contraction in factory activity for the fourth consecutive month, despite efforts to stabilise markets.
The Caixin China General Manufacturing PMI, however, surprised observers by remaining stable at 50.8 in January 2024—beyond market expectations and indicating growth for the third straight month.
Furthermore, primary aluminium imports reached a record high of 1.54 million metric tonnes globally in 2023, narrowly missing the record total set in 2021.
In 2023, Japan’s primary aluminium imports decreased by 26% to 1.03 million metric tonnes. Primarily due to a slowdown in demand from the manufacturing and construction sectors.
According to technical analysis, the aluminium market is going through a protracted liquidation, with prices down -2.1 rupees and open interest staying steady at 3737.
Currently, aluminium is finding support at 198.8, with 197.9 serving as a possible downside test. Resistance is seen at 201 on the upside, and a breakout there could take the price as high as 202.3.