Aluminium closed up 0.47% at 205.1, boosted by strong market sentiment fueled by real estate support policies and a relaxation of purchase limitations in Guangzhou. These actions greatly increased market confidence for aluminium.
Japan’s primary aluminium imports fell by 26% to 1.03 million metric tonnes in 2023. A significant decrease in the global aluminium landscape. This decline was attributed to weak demand in the manufacturing and construction sectors.
Statistics from the Japan Aluminium Association (JAA) and the Japanese Finance Ministry show. That the import figure for 2023 is the the weakest since at least 1986. Even below the levels recorded in 2020 during the COVID-19 pandemic.
According to a survey by the Aluminium Institute, the global alumina output in December 2023 was recorded at 12.298 million tonnes, contributing to an annual total output of 141.924 million tonnes. A slight decrease from 142.23 million tonnes in 2022.
Remarkably, the second half of 2023 saw a notable 5.02% increase in alumina production over the first half of the year, demonstrating the resilience of the aluminium supply chain. According to a World Bureau of Metal Statistics (WBMS) report.
There was an 80,000-ton supply shortfall in November 2023. Because of the difference between the world’s primary aluminium output of 5.8613 million tonnes and its consumption of 5.9714 million tonnes.
Technically speaking, the market for aluminium is presently experiencing short-covering. As evidenced by a -1.45% decline in open interest that has settled at 3658.
There has been a 0.95 rupee price increase. Aluminium is supported at 204, and a test of 203 levels could be seen on the downside. Resistance is anticipat at 205.7 on the upside, and a breakthrough could result in a test of the 206.4 levels.