The price of aluminium closed at 203.85 after declining by -0.54%. Remarkably, the International Aluminium Institute (IAI) revealed that global primary aluminium output reached 5.871 million tonnes in September, up 2.7% year over year.
In September, China’s aluminium production increased by 5.3%, and for the first nine months of the year, it increased by 3.3%. For information on demand, the aluminium market is watching purchasing manager surveys in China’s manufacturing sector, which are anticipated later in October.
Aluminium inventories in LME warehouses have dropped by over 20% since June, with a large amount designated for delivery. A narrower cash-aluminum contract discount is caused by huge holdings of aluminium warrants, which influence higher aluminium prices.
The Chinese aluminium market is getting close to its peak capacity, thus no considerable capacity expansion is anticipated, according to the projection. Technically, there was new selling as open interest rose by 1.74% to 3567 and prices fell by -1.1 rupees. Aluminium has a 203.2 support level and might reach 202.5. Prices may rise to 206.1, but resistance is probably at 205.
