India Base Metals
Down on weak Chinese econ data, dollar recovery
This story was originally published at 19:54 IST on 1 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of all base metals fell today on the Multi Commodity Exchange of India, tracking a fall on the London Metal Exchange because of weaker-than-expected economic data from China. The sentiment in non-ferrous metals was also hurt by profit-taking and a recovery in the dollar, which makes dollar-denominated commodities such as non-ferrous metals expensive for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.4% at 104.39.
China's Caixin manufacturing purchasing managers' index fell for a third straight month in July to 49.8 from 51.8 in June. A reading below 50 indicates a contraction in economic activity. China is the biggest user and consumer of non-ferrous metals.
Investors will now take cues from the US non-farm payroll data, which will be released on Friday.
ALUMINIUM prices fell because of rising inventory in China and profit-taking by traders on the domestic exchange.
COPPER was down because of weak economic data from the top consumer China and a rebound in the dollar. The sentiment was also hurt by a rise in stocks by 5,875 tn at LME-accredited warehouses.
LEAD contracts were lower because of the unwinding of long positions by market participants on the domestic bourse.
ZINC contracts traded lower as traders increased their short positions on the MCX.
At 1825 IST, on the MCX, the August futures contract of:
–Aluminium was at 213.10 rupees a kg, down 0.7%
–Copper was at 801.90 rupees a kg, down 0.7%
–Lead was at 188.30 rupees a kg, down 0.2%
–Zinc was at 252.70 rupees a kg, down 0.6%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 210.70-218.30 rupees
–Copper seen at 790.40-806.60 rupees
–Lead seen at 186.80-189.30 rupees
–Zinc seen at 249.10-255.80 rupees
End
US$1 = 83.72 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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