Aluminium prices rose to a four-month high, boosted by rising industrial profits in China, the metal’s biggest consumer, a weaker dollar and supply issues. When the store starts, it will be three months after the Christmas break.
Aluminium on the London Metal Exchange (LME) was up 2.9% at $2,394.5 a tonne by 1701 GMT, having hit its highest level since April 24 at $2,397. , said one businessman. Shipments from Guinea, the world’s third-largest producer of alumina raw material bauxite, were also under scrutiny after fuel tanks at the main fuel import terminal exploded on December 18.
Guinea Alumina Corporation offered the Guinean government the use of GAC’s fuel dock and bulk storage to investigate the aftermath of the explosion. Aluminium rose despite daily LME data showing total inventories in LME registered warehouses (MALSTX-TOTAL) for four months at 523,725 tonnes after delivery of 15,950 tonnes.
Adding to this, the dollar hit a five-month low of 100.771 against major currencies as the US Federal Reserve may soon cut interest rates, making dollar-denominated metals more attractive to buyers using other currencies. As many traders were looking forward to the holidays, volumes are likely to remain calm until the turn of the year.
Technical Outlook
Aluminium prices continued to rise from 11.12.2023, prices increased by more than 7%. This is the biggest gain since January 2023. Rates touched a four-month high of 212.80 and traded at 212.20.
A bullish engulfing pattern led to a sharp bullish move. In our view, on 12/18/2023, aluminum hit both forecast targets of 207.50-212.50 after breaking the resistance of 205.00.
On the above chart, prices are moving towards mass resistance at 213.20, which coincides with a multi-week high. A cross and support from above will open the door to 218.00-220 soon.
So, fresh buying is expected above 213.20, otherwise any drop between 209.50-210 will attract buyers. Alternatively, on the downside, crucial support can be seen below 204.50 and below it 200-196.00.
Commodity Samachar
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