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Informist, Friday, Aug 9, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of all base metals rose today on the Multi Commodity Exchange of India and the London Metal Exchange because China inflation data came in above market expectations. The positive sentiment in non-ferrous metals was also lifted by improved risk sentiment and a weaker dollar.

Data from China's National Bureau of Statistics showed that the consumer price index rose 0.5% on year in July from 0.2% in June, but higher than the market expectation of a 0.3% rise. The producer price index that measures factory gate prices fell 0.8% on year last month.

The Federal Reserve Bank of Boston President Susan Collins said the US central bank may start easing monetary policy, in an interview published in The Providence Journal today. The statement also boosted riskier assets such as industrial metals.

At 1900 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 103.17. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.

"Base metals continue to trade higher for the second session metals after signs of resilience in the US labour market improved risk appetite. The decline in US jobless claims helped alleviate fears about a recession that had rippled through global markets," Kotak Securities said in a note.

ALUMINIUM prices rose due to short-covering of positions by traders on the domestic exchange. The fall in a stock by 3,500 tn at LME-registered warehouses also lifted the price.

COPPER gained as traders continued to reduce their bearish positions on the domestic bourse.

LEAD prices rose taking cues from the LME, due to a fall in exchange stocks by 975 tn.

ZINC contracts traded in the green as market participants increased their bullish positions on the MCX.

* At 1910 IST, on the MCX, the August contract of:

–Aluminium was at 215.90 rupees a kg, up 1.3%

–Copper was at 782.90 rupees a kg, up 1.1%

–Lead was at 186.30 rupees a kg, up 1.2%

–Zinc was at 257.15 rupees a kg, up 2.3%

* Outlook for the evening session on the MCX:

–Aluminium contract seen at 213.30-217.90 rupees

–Copper seen at 775.10-792.50 rupees

–Lead seen at 184.80-188.30 rupees

–Zinc seen at 253.10-259.70 rupees

End

US$1 = 83.96 rupees

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

Edited by Aditya Sakorkar

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