India Base Metals
Copper down tracking LME on weak China demand
This story was originally published at 19:46 IST on 23 July 2024
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By J. Navya Sruthi
MUMBAI – Futures contracts of COPPER fell on the Multi Commodity Exchange of India tracking those on the London Metal Exchange due to weak demand from China and rising inventories.
"The slowdown in China's property sector has been a major headwind to copper and other industrial metals demand for over two years," Dow Jones quoted ING analysts as saying in a note. "We believe the continued weakness in the sector remains the main downside risk to our outlook," it reported, quoting ING analysts note.
"LME Copper prices fell further on Tuesday, reaching their lowest level in more than three months, on mounting fears about demand from main user China following the latest policy announcements, which disappointed market participants," Kotak Securities said in a note.
On Monday, the People's Bank of China cut the prime lending rates by 10 basis points, even as market participants expected more stimulus measures from the central bank, analysts said. Meanwhile, base metals are expected to trade lower. The one-year loan prime rate was lowered by 10 bps to 3.35% from 3.45% previously, while the five-year loan prime rate was reduced by the same margin to 3.85% from 3.95%.
ALUMINIUM prices were down as market participants cut down positions on easing demand from consuming industries, Rediff Money reported. At 1830 IST, on the MCX, the August contract of aluminium was at 215 rupees per kg, down 0.1%.
* At 1830 IST, on the MCX, the July contract of:
–Copper was at 805.16 rupees a kg, down 1.1%
–LEAD was steady at 186.95 rupees a kg
–ZINC was at 257.45 rupees a kg, down 2.4%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 211.40-218.80 rupees
–Copper seen at 802.00-816.60 rupees
–Lead seen at 184.80-190.00 rupees
–Zinc seen at 251.5-265.00 rupees
End
US$1 = 83.68 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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