The price of aluminium fell by -0.64%, finishing at 195.1, indicating that demand was still muted in spite of earlier efforts to reduce supply. Key industries that used aluminium were negatively impacted by the global economic downturn, restrictive borrowing rates set by central banks, and the debt problem in Chinese real estate.
The global downturns in the industrial and real estate sectors, together with a slowdown in the demand for electric vehicles in China, have caused a 57% decline in aluminium sales for Norwegian company Norsk Hydro in the third quarter.
Because of ongoing restructuring in the property industry and concerns about continued reduced economic growth, Moody’s revised its assessment of China’s credit outlook to “negative.” China, as the world’s largest producer of aluminium, stopped expanding its production capacity in order to avert an overstock.
According to the International Aluminium Institute, the world’s primary aluminium output increased by 3.9% year over year in October to reach 6.116 million tons. From a technical perspective, the market saw new selling as open interest increased by 5.09% to 4891 and prices fell by -1.25 rupees. Aluminium has resistance at 196.7 and a move over it aiming for 198.2. Support for aluminium is at 194.1, with a potential test of 193.
