Aluminium yesterday traded with the negative node and settled -0.76% down at 105.65 as sharp contraction in Chinese imports in June pushed the US dollar index to test resistance at 83.5, weakening momentum of commodities. Sluggishness in demand and global economies has empowered shorts. LME aluminum is expected to struggle at 1900/mt and move between $1885-1,915/mt. Meanwhile Gulf News reported that aluminum production is tilting towards the Gulf and industry giants Rio Tinto are betting heavily that the region can produce aluminium more cheaply and can grab global market share. The rush to lower production costs is intense. The aluminium market currently is so oversupplied that market participants say half of the world's production is unprofitable at current prices. Producers and state owned companies hope Gulf production can take advantage of low energy costs locally and lower shipping rates globally. Euro zone FM announced July 10 the plan to conclude a final deal with Spain on July 20 for providing the first batch EUR
30 billion bailout funds for the country, and the decision to put off the deadline for cutting Spain's deficit by one year to 2014. Thus, uncertainties caused concerns and prevented base metals from picking up. For today's session market is looking to take support at 105.3, a break below could see a test of 104.9 and where as resistance is now likely to be seen at 106.3, a move above could see prices testing 106.9.

Trading Ideas:

Aluminium trading range for the day is 104.85-106.85.

Aluminium dropped as sharp contraction in Chinese imports in June pushed $ index higher weighed on prices

There was negative news that customer's capital at US futures brokerage company disappeared mysteriously

Aluminium daily stocks at Shanghai exchange came up by 25 tonnes