Aluminium yesterday traded with the range bound node and settled flat at 108.5 as Inflation pressure stays for the world’s largest metals consumer China. European debt risks still exist. The largest US bank JPMorgan reported heavy losses. All these pressured metals on Friday. LME aluminum hit a low of USD 2,031.8/mt but settled up slightly by USD 7.3/mt or 0.36% at USD 2,048.5/mt supported by the much better-than-expected US Michigan University Consumer Confidence Index. The light metal was the only base metal that gained on Friday. Chinese central bank’s second reserve requirement cut this year will boost domestic financial markets. Market confidence, however, is still curbed by Greek political uncertainty. LME aluminum is expected to test pressure at the 10-day moving average above and move between USD 2,040-2,080/mt. China unwrought Aluminium imports have declined by 22%, China customs data showed today. The China unwrought Aluminium imports declined from 120494 tonnes in March 2012 to 94352 tonnes in April 2012. China Aluminium imports moved up by 23% on a yearly basis, total imports were 79724 tonnes in April 2011. In yesterday's trading session aluminium has touched the low of 108.4 after opening at 108.5, and finally settled at 108.5. For today's session market is looking to take support at 108.4, a break below could see a test of 108.3 and where as resistance is now likely to be seen at 108.6, a move above could see prices testing 108.6.

Trading Ideas:

Aluminium trading range for the day is 108.33-108.63.

Aluminium settled flat as Inflation pressure stays for the world’s largest metals consumer China.

The China unwrought Aluminium imports declined from 120494 tonnes in March 2012 to 94352 tonnes in April 2012

Market confidence, however, is still curbed by Greek political uncertainty.