Aluminium prices rose by 0.52% to settle at Rs. 328.25, driven by a weaker US dollar following an unexpected Democratic victory in the midterm elections. The decline in global inventories, now at around 44 days of consumption, the lowest in recent years, also provided support, reflecting strong demand. Inventories tracked by the Shanghai Futures Exchange dropped 10.3% from the previous week.
However, gains were limited by expectations of improving global supply and a potential market surplus in 2027. Middle East production losses were revised lower to less than 2 million tons, with Emirates Global Aluminium restarting 631 of 1,262 reduction cells at its Al Taweelah smelter, restoring 50% of capacity. Full production is expected in the first quarter of 2027. China’s primary aluminium production hit a record quarterly high of 11.84 million tons during July-September, up 2.2% year-on-year.
Technically, the market saw short covering, with open interest declining 6.09% to 4,022 contracts as prices increased by Rs. 1.70. Aluminium found support at Rs. 325, with potential downside testing Rs. 322, while resistance is at Rs. 330.50. A sustained move above this level could push prices toward Rs. 333.00.