Aluminium showed tenacity during yesterday’s trading session, rising by 0.58% to close at 233.3. Yunnan, China’s continuous production restrictions brought on by the yearly dry season further strained supplies, which affected market sentiment.

Concerns about the security of bauxite were brought up by the Aluminium Corp of China, highlighting China’s dependence on Guinea. Which has experienced disruptions since an explosion in a vital fuel depository. Concerns about potential future limitations on Russian metal purchases outside of LME contracts also hampered supply prospects and increased market uncertainty.

According to customs data, unwrought aluminium and its products increased by 89.8% to 380,000 metric tonnes in March, demonstrating China’s strong appetite for the metal.

The first quarter’s import volumes increased 92.3% year over year, indicating robust demand dynamics. China’s main aluminium output increased 7.4% in March compared to the same month last year. Despite production gains, as higher metal prices supported industry profitability.

Because aluminium is use extensively in the automotive, housing, and packaging industries. There has been a surge in demand for the metal due to China’s manufacturing activity expanding for the first time in six months.

Technically, the market saw short covering, resulting in a 3.85% decrease in open interest to 4145 contracts and a 1.35 rupee increase in price.

Aluminium is currently finding support at 231.1. And if this level of support is broken, there is a chance that metal will test lower levels at 228.9. On the other hand, resistance is expect at 235.1. And an upward trend could push prices as high as 236.9.

SHREE METAL PRICES