India Base Metals
Most up on short-covering, weak dollar
This story was originally published at 19:38 IST on 8 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange rose today because of short-covering of positions. A fall in stocks at LME-registered warehouses further supported prices, and a weakness in the dollar, which makes dollar-denominated commodities cheaper for buyers holding other currencies, boosted the positive sentiment.
LME stocks of ALUMINIUM fell by 3,500 tn to 910,950 tn, COPPER stocks declined 325 tn to 294,425 tn, LEAD stocks fell by 4,600 tn to 213,825, and ZINC stocks fell by 2,350 tn to 242,025 tn.
At 1810 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 103.08 due to a rise in US weekly jobless claims. The US Labour Department data released today showed that the number of citizens claiming jobless benefits rose by 17,000 to 233,000 in the week ended Saturday.
However, the upside in non-ferrous was restricted due to concerns about demand in the top consumer, China.
ALUMINIUM prices rose as traders increased their short positions on the domestic exchange.
COPPER prices gained due to short-covering of positions by market participants on MCX. The fall in LME-registered warehouses' stock also aided the prices.
LEAD contracts traded higher because of short-covering.
ZINC contracts outperformed other non-ferrous metals on the upside after a sharp fall in the past few sessions.
At 1810 IST, on the MCX, the August futures contract of:
–Aluminium was at 211.05 rupees a kg, down 0.4%
–Copper was at 771.25 rupees a kg, up 0.1%
–Lead was at 183.15 rupees a kg, up 0.1%
–Zinc was at 248.00 rupees a kg, up 1.2%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 208.90-213.70 rupees
–Copper seen at 764.50-784.40 rupees
–Lead seen at 181.40-184.80 rupees
–Zinc seen at 243.20-251.80 rupees
End
US$1 = 83.96 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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