India Base Metals
Copper down on weak China data, rise in LME stocks
This story was originally published at 20:19 IST on 15 July 2024
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By Sandeep Sinha
MUMBAI – Prices of COPPER on the Multi Commodity Exchange of India fell today, tracking the London Metal Exchange, because of weak economic data from China. Sentiment in the red metal was also weighed down by the rising inventory at LME-registered warehouses.
China's GDP rose 4.7% on year in Apr-Jun, compared to 5.3% growth in Jan-Mar, falling short of analysts’ expectations of a rise of 5.1%, according to National Bureau of Statistics data released today. "Chinese GDP growth saw the slowest pace of expansion in five quarters and was worse than even conservative projections. Weak confidence, no doubt driven by the drive for common prosperity resulting in a sharp decline in June’s consumption and services," Al Munro at broker Marex said in a note.
The copper stock at LME-accredited warehouses rose by 4,100 tn to 210,325 tn, the highest level since October 2021. The continued weakness in China’s property sector also weighed on copper demand.
However, the downside in copper was limited by weakness in the dollar index, which makes dollar-denominated commodities such as copper cheaper for holders of other currencies. The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 104.17.
Investors will take cues from US Federal Reserve Chair Jerome Powell’s speech at the Economic Club of Washington later today. They will also watch the third plenum of the Chinese Communist Party, which started today, for any policy announcement.
ALUMINIUM prices fell as traders increased their short positions on the domestic exchange. The rise in aluminium inventories by 18,180 tn to 262,000 tn last week also hurt prices.
LEAD contracts traded slightly lower as market players raised their short positions on the MCX.
ZINC contracts traded higher, taking cues from the LME, owing to a fall in stocks by 3,650 tn in exchange warehouses.
* At 1845 IST, on the MCX, the July contract of:
–Aluminium was at 227.90 rupees a kg, down 0.5%
–Copper was at 860.85 rupees a kg, down 0.9%
–Lead was at 189.90 rupees a kg, down 0.1%
–Zinc was at 274.30 rupees a kg, up 0.4%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 226.60-229.70 rupees
–Copper seen at 858.90-869.30 rupees
–Lead seen at 188.80-190.40 rupees
–Zinc seen at 272.80-276.60 rupees
End
US$1 = 83.59 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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