Aluminium yesterday settled up 1.79% at 110.90 after Aluminum Corporation of China announced yesterday that it will implement flexible production at some of its aluminum smelters to maximize profits, cutting capacity by 380,000 mt/yr. This will help ease overcapacity and lend support to aluminum prices. As a result, LME aluminum leaped to USD 1,981/mt, leading gains among base metals. LME aluminum, however, trimmed some gains at the tail of the session due to market caution, and finally closed up 1.09% at USD 1,964.3/mt, sustaining a 7-day winning streak. Also according to the ADP National Employment Report, 135,000 jobs were added in US private sectors in May, well below the 165,000 forecast. This kept investors cautious about non-farm employment due to the released tomorrow. US factory orders increased 1.0% MoM in April, also missing expectations. On the other hand, disappointing data will allow the US Federal Reserve to keep monetary stimulus in place, sending the US dollar index down. However, gains of commodity prices were limited by cloudy economic prospects.  Also production cuts by Chalco will bolster the light metal in the short term. Technically market is under fresh buying as market has witnessed gain in open interest by 3.6% to settled at 4944 while prices up 1.95 rupee, now Aluminium is getting support at 110 and below same could see a test of 108 level, And resistance is now likely to be seen at 113, a move above could see prices testing 114.

Aluminium trading range for the day is 108-114.

Aluminium gained supported by news that China's largest producer has decided to temporarily close some capacity due to weak market conditions.

Aluminum Corporation of China (Chalco) announced that it will implement flexible production at some of its aluminum smelters, cutting capacity by 380,000 mt/yr.

Aluminium daily stocks at Shanghai exchange came down by 1522 tonnes

Warehouse stock for Aluminium at LME was at 5194425mt that is  down by  -1975mt.