Aluminium dropped as LME prices dropped by a percent after rise in LME Stocks for fourth consecutive day. Data from China this week, including manufacturing and service sector activity, cast doubt over the sustained growth of the world's second-largest economy. Tinto and its partners are cutting output and jobs at the Boyne aluminium smelter in Australia, adding to cuts announced in January, it said, blaming a jump in power prices. Rio said output would be cut by 14 percent and that "a significant number of jobs lost". The latest production cut follows plans in January to cut output this year by about eight percent, or 45,000 tonnes, because of rising costs of power, 85 percent of which is provided by Gladstone Power Station. China has ordered curbs on steel and aluminum output in as many as 28 northern cities during the winter heating season as it steps up its fight against pollution, according to people with knowledge of the matter. The cuts include halving steel capacity in four major cities, including top producer Tangshan in Hebei province, according to the people, who asked not to be identified because the matter is confidential. The other cities are Shijiazhuang and Handan in Hebei, and Anyang in the neighboring province of Henan. The plan calls for cuts in aluminum capacity of more than 30 percent across 28 cities, and by about 30 percent for alumina capacity, according to the people, who cited an order issued late last month by authorities including the Ministry of Environmental Protection and the National Development and Reform Commission. Technically now Aluminium is getting support at 125 and below same could see a test of 123.9 level, And resistance is now likely to be seen at 127.7, a move above could see prices testing 129.3.

Trading Ideas:

# Aluminium trading range for the day is 123.9-129.3.

# Aluminium dropped as LME prices dropped by a percent after rise in LME Stocks for fourth consecutive day.

# Tinto and its partners are cutting output and jobs at the Boyne aluminium smelter in Australia, adding to cuts announced in January, it said.

# China has ordered curbs on steel and aluminum output in as many as 28 northern cities during the winter heating season as it steps up its fight against pollution.