Aluminium prices fell to their lowest levels in almost four months on Monday. The prices dropped over two percent that was a biggest intraday fall after 7 june 2024, as some bullish positions were scrapped and other base metal prices declined amid concerns about demand given a lack of fresh stimulus in top consumer China.
Three-month aluminium on the London Metal Exchange ALI1!was down 1.6% to $2,313 per metric ton after hitting $2,296, its lowest price since March 28. MCX Aluminum settled at 215.75, down 2.24%.
Prices for aluminium, used in the construction, transportation and packaging sectors, are down 17% since hitting their highest levels in almost two years in late May. The metal broke below the 200-day moving average for the first time since February.
Metal markets were looking for signs that the Chinese government would take action to address the country’s prolonged property slump, the biggest driver of industrial metals demand.
Without further stimulus measures, there is little hope for a near-term recovery for the property and construction sector. We expect copper and other industrial metals prices to decline further in the near term to reflect a softer demand outlook in China.
The metal is down 17% since reaching a record high on May 20, and the drop has revived some physical buying in China. The premium to import copper into China rose to $9 a ton on Friday, the highest since April 15.
Technical Outlook : Aluminium Futures
Aluminum prices plunged by 2.24%, after touching a three month low 214.95 settled at 215.75. As compared to the previous day’s close of 220.70.
At the end of May 2024, prices turned lower, and continued to trade down. Prices retreated from the high 250.90 and made a low 214.95 yesterday. Formation of a long bearish candlestick is still indicating a bearish momentum. However, prices would need to break below the next support 213.50 in order to test 208-206.00.
Else, prices may consolidate in between the range of 214.00-225.00 before next any big move.
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Commodity Samachar
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