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Aluminium market rises on short covering, open interest drops 14.65%

Issued at 2015-11-11



Aluminium settled up 1.66% at 100.95 after London Metal Exchange (LME) data showed 99,500 tonnes of the metal was booked to leave warehouses in Vlissingen. 

LME prices jumped 1 percent to finish at a two-week high of $1,523 a tonne despite fundamentals remain poor due to oversupply.

While a strong US dollar due to expectations for US rate hike kept the aluminum prices in check. The total set to leave LME warehouses is now equivalent to 45.5 percent of the 3.01-million-tonne headline stock figure.

The U.S. Department of Labor said in its October national employment report that nonfarm payrolls surged by 271,000 last month, significantly above expectations for a consensus gain of 190,000. The sharp gains marked the largest increase in U.S. nonfarm jobs since last December.

Private payrolls also soared by 268,000 in October, above forecasts of a 174,000 increase. 

China Aluminum International Trading Co. hiked aluminum prices by 150-220 yuan per tonne this past week after continuous cuts in previous weeks.

The overwhelming majority of workers for the Rio Tinto Alcan aluminium smelter have voted in favour of going on strike. If the strike goes forward, between 300 and 400 workers could walk out. The next negotiations meeting will be held next week.

Technically market is under short covering as market has witnessed drop in open interest by -14.65% to settled at 7028 while prices up 1.65 rupee, now Aluminium is getting support at 99.4 and below same could see a test of 97.8 level, and resistance is now likely to be seen at 101.9, a move above could see prices testing 102.8


Source: Aluplanet



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