India Base Metals
Most up as dollar weak; US jobs data in focus
This story was originally published at 19:07 IST on 2 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India, tracking gains on the London Metal Exchange because of the weakness in the dollar ahead of the US non-farm payrolls data later today. Analysts polled by Dow Jones estimate payrolls to come in at 185,000 in July against 206,000 in June.
The positive sentiment in non-ferrous metals was also boosted by a fall in stocks at LME-registered warehouses. Stocks of ALUMINIUM at the exchange fell by 3,700 tn to 925,625 tn, LEAD stocks fell by 2,725 tn to 231,600 tn, and ZINC stocks were down 2,125 tn to 232,550 tn. COPPER stocks, however, rose by 1,350 tn to 246,500 tn.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.3% at 104.07. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.
However, the upside in industrial metals was capped as weak manufacturing data in the US and China raised concerns over demand from two of the world's largest economies.
Aluminium prices were up as traders increased their long positions on the domestic exchange.
Copper rose due to weakness in the dollar and short-covering of positions by traders on the domestic bourse.
Lead contracts traded lower as market participants increased their short positions on MCX.
ZINC contracts traded higher as traders trimmed their short positions on the domestic exchange. The sentiment was further aided by a rise in steel prices, as zinc is used for galvanisation.
At 1710 IST, on the MCX, the August futures contract of:
–Aluminium was at 212.60 rupees a kg, up 0.4%
–Copper was at 796.50 rupees a kg, up 0.8%
–Lead was at 186.15 rupees a kg, down 0.2%
–Zinc was at 252.90 rupees a kg, up 1%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 209.00-217.00 rupees
–Copper seen at 790.00-804.00 rupees
–Lead seen at 184.00-188.00 rupees
–Zinc seen at 250.00-255.00 rupees
End
US$1 = 83.75 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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