Aluminium prices experienced a minor decline, decreasing by 0.04% to close at Rs 350.6, as profit-taking occurred following the recent surge attributed to supply apprehensions. The market previously experienced a surge due to concerns over potential disruptions stemming from Iranian airstrikes on significant Middle Eastern producers, thereby heightening the risk of an extended supply shock.

Concerns have been heightened due to damage inflicted on facilities managed by Emirates Global Aluminium and Aluminium Bahrain, particularly in light of the ongoing partial shutdowns. Supply-side pressures continue to be a significant focus. The closure of the Strait of Hormuz has significantly impacted shipments to key markets such as the U.S. and Europe, concurrently, aluminium inventories in LME warehouses have experienced a notable decline over the past year. Physical premiums have reached multi-year highs, indicative of constrained availability.

Simultaneously, prospective export limitations from Guinea and persistent geopolitical uncertainties cast a shadow over the forecast. Nonetheless, increasing global inventories coupled with apprehensions regarding decelerating economic growth have begun to exert downward pressure on prices. On the production front, global output experienced a slight uptick, while China persists in enhancing production levels despite a decline in import demand. The current dynamics of supply and demand are contributing to a range-bound price environment at this time.

The market is currently experiencing long liquidation, as evidenced by a 0.19% decrease in open interest, which now stands at 3,102 lots. Immediate support is identified at Rs 347.1, with potential further decline toward Rs 343.6. On the upside, resistance is positioned at Rs 357, and a breach of this level may propel prices toward Rs 363.4.