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BUY ALUMINIUM MAY @ 383 SL 380 TGT 386-388. MCX

Observations

Aluminium trading range for the day is 375.8-390.8.

Aluminium rose propelled higher by disrupted supplies from the Middle East, which houses 9% of global smelting capacity.

The closure of the Strait of Hormuz has also stalled shipments of aluminium to the United States and Europe.

Expectations of large deficits have created backwardations or premiums for nearby aluminium contracts against those with longer maturities.

Copper

BUY COPPER MAY @ 1330 SL 1320 TGT 1344-1354. MCX

Observations

Copper trading range for the day is 1326.5-1353.7.

Copper prices fell as worries about demand were reinforced by weak economic data from top consumer China and high oil prices.

China's industrial production data rose 4.1% in April from a year earlier, compared with a 5.7% rise in March.

Chinese data had triggered a further unwinding of long positions – bets on higher prices – held by funds and traders.

Zinc

BUY ZINC MAY @ 364 SL 361 TGT 367-370. MCX

Observations

Zinc trading range for the day is 361.6-370.2.

Zinc prices rose supported by tightening supply conditions following recent disruptions.

Zinc stocks on the LME are at 110,875 tons, equivalent to less than three days of global consumption.

The International Lead and Zinc Study Group had expected there to be a 19,000 ton deficit in the refined zinc market this year.