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Informist, Tuesday, Jul 30, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of all base metals fell today on the Multi Commodity Exchange of India and the London Metal Exchange because of risk aversion and a firm dollar. A stronger greenback makes dollar-denominated commodities expensive for holders of other currencies.

At 1815 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 104.75.

China has vowed to step up macro policies and stabilise market confidence to ensure it achieves the economic growth goal from the Politburo meeting today. The series of macroeconomic policy measures of the Poliburo may boost the demand for metals, steel, coal, etc.

However, selling continued in the market, the trend remained firmly in place despite the Politburo meeting headlines providing some minimal support, Al Munro a broker Marex said in a note. 

For further cues, investors will keep an eye on US job openings and labour turnover survey data and Conference Board Consumer Confidence data, later in the day. They will also watch out for the Bank of Japan and the US Federal Open Market Committee's interest rate decisions on Wednesday.

ALUMINIUM prices fell due to selling by commodity trading advisers. "China aluminium alloy operating rates at leading firms increased to 55% in July from the previous low back in Jan and Feb at 49%," Marex said in a note.

COPPER prices fell due to concerns about demand in China and a firm dollar. The rise in stock by 300 tn at LME-registered warehouses also hurt prices.

LEAD contracts fell as market participants increased their short positions on the domestic exchange.

ZINC contracts were in the red as traders trimmed long positions on the MCX.

At 1835 IST, on the MCX, the August futures contract of:

–Aluminium was at 206.65 rupees a kg, down 1.2%

–Copper was at 784.0 rupees a kg, down 0.9%

–Lead was at 185.40 rupees a kg, down 0.9%

–Zinc was at 248.25 rupees a kg, down 0.6%

Outlook for the evening session on the MCX:

–Aluminium contract seen at 205.80-209.50 rupees

–Copper seen at 779.40-793.50 rupees

–Lead seen at 184.30-186.50 rupees

–Zinc seen at 246.30-252.70 rupees

End

US$1 = 83.73 rupees

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

Edited by Aditya Sakorkar

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