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Informist, Wednesday, Jul 24, 2024

By Sandeep Sinha

MUMBAI – Prices of COPPER on the Multi Commodity Exchange of India fell today, tracking the London Metal Exchange, because of weak demand in top consumer China and continued selling by commodity trading advisers. Sentiment for the red metal was also weighed down by the rising inventory at LME-registered warehouses.

The copper stock at LME-approved warehouses rose by 5,050 tn to 241,750 tn, the highest since September 2021. The continued weakness in China's property sector also weighed on copper demand.

The International Copper Study Group's latest data showed global refined copper production rose 6.1% in Jan-May to 11.57 mln tn, and consumption rose 3.7% to 11.16 mln tn. This imbalance widened the global copper market surplus to 416,000 tn in Jan-May from 154,000 tn in the same period last year.

Money managers trimmed their long copper positions by 10,706 lots to 71,228 lots as on Jul 19, according to LME commitment of traders report. "This is due to concerns over China’s weak consumption and surging global inventories," ING Economics said in a note.

Investors will take cues from US Flash manufacturing and services Purchasing Managers Index data to be released later today.

ALUMINIUM prices rose after China issued fresh emission reduction plans to smelters, which may result in output cuts. The fall in LME exchange-warehouses inventories by 3,775 tn to 948,450 tn, also lifted prices.

LEAD contracts traded lower due to selling by commodity trading advisers. Traders increasing their short positions on the domestic exchange also hurt prices.

ZINC contracts erased earlier losses and turned positive as market participants increased their long positions on the MCX. The fall in LME-accredited warehouses stocks 1,875 tn to 245,550 tn today also supported the upbeat sentiment.

* At 1805 IST, on the MCX, the August contract of:

–Aluminium was at 214.80 rupees a kg, up 0.5%

–Copper was at 806.65 rupees a kg, down 0.4%

–Lead was at 185.15 rupees a kg, down 0.5%

–Zinc was at 255.70 rupees a kg, up 0.5%

* Outlook for the evening session on the MCX:

–Aluminium contract seen at 212.60-216.80 rupees

–Copper seen at 801.40-816.60 rupees

–Lead seen at 185.00-187.80 rupees

–Zinc seen at 254.00-264.20 rupees

End

US$1 = 83.72 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Aditya Sakorkar

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