Aluminium closed up 2.42% at 203.1, boosted by optimism about other stimulus measures in China, the world’s largest metal consumer. China’s cabinet pledged to raise capital market funding in order to restore investor confidence, potentially mobilising up to 2 trillion yuan to prop up the collapsing stock market.
According to the International Aluminium Institute (IAI). The world’s primary aluminium output increased by 2.1% in December compared to the same month last year, reaching 6.041 million tonnes.
But China’s economy grew less quickly than expected, and the country’s real estate market saw falling sales.
In order to support the US dollar, Federal Reserve officials defied market expectations of several rate cuts. In 2023, China’s imports of unwrought aluminium and its products increased by 28% to 3.06 million metric tonnes.
Strong demand and rising prices were identified by the General Administration of Customs as the main causes of the rise in shipments of aluminium into the largest consumer market in the globe.
The projection indicated that China’s primary aluminum consumption would experience a 3.9% growth in 2023, reaching 42.5 million tons, driven by increasing demand from the solar and auto sectors.
Technically, the aluminium market is undergoing fresh buying, marked by a 1.93% increase in open interest to 3175, alongside a price gain of 4.8 rupees.
Aluminium finds support at 199.5, and breaking below could test 196 levels. The upside is expect to encounter resistance at 205.1; a move above this level could result in additional testing at 207.2.