Aluminium on MCX settled down -0.24% at 124.70 tracking weaknesss from LME Aluminium which closed 0.5 per cent down at $US1,868 fairly steady. Stock declines continue to be offset by re-warranting – Net inventories are down 16,750 tonnes to 2,084,800 tonnes and cancelled warrants fell 16,475 tonnes to 786,550 tonnes. The United States has launched a trade case accusing Chinese aluminium foil producers of dumping product and damaging its domestic industry, the first such case since the inauguration of U.S. President Donald Trump. The Aluminum Association filed antidumping and countervailing duty petitions with the Department of Commerce and the International Trade Commission charging that unfairly traded imports of certain aluminum foil from China are causing material injury to the domestic industry. Bets on a Fed move on rates this month grew after data on Wednesday showed U.S. private sector job growth registered its biggest increase in more than a year in February, suggesting the economy remains on solid ground. Supporting the dollar, the number of Americans filing for unemployment benefits last week rebounded from a near 44-year low, but the labor market continues to tighten amid a sharp drop in job cuts in February. China will move forward with restructuring central government enterprises this year, and focus on the steel, coal, heavy equipment and coal-fired power sectors, the head of the state asset regulator said. Technically market is under long liquidation as market has witnessed drop in open interest by -11.89% to settled at 2148 while prices down -0.3 rupees, now Aluminium is getting support at 123.7 and below same could see a test of 122.5 level, And resistance is now likely to be seen at 125.6, a move above could see prices testing 126.3.

Trading Ideas:

Aluminium trading range for the day is 122.5-126.3.

Aluminium dropped reflecting losses across industrial metals and other assets as the markets geared up for an expected increase to U.S. interest rates this month.

Global aluminium output was running at an annualised pace of 62.0 million tonnes in January, a new all-time record.

Economic data out already shows Chinese CPI at 0.8%, down from 2.5%, but the weaker figure has been blamed on the Chinese Lunar New Year holiday.