India Base Metals
All up on upbeat risk sentiment; LME stocks down
This story was originally published at 20:13 IST on 12 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange today owing to improved risk appetite. The positive sentiment was supported by a fall in stocks at LME-registered warehouses.
LME stocks of ALUMINIUM fell by 3,850 tn to 910,950 tn, COPPER stocks declined 275 tn to 296,125 tn, LEAD stocks fell by 1,300 tn to 211,550, and ZINC stocks fell by 400 tn to 239,525 tn.
"Base metals began the week higher on forecasts of a slower decrease in China's home prices, and stable important data releases may assist in maintaining the domestic consumption picture, following better-than-expected import and CPI data," Kotak Securities said in a note.
Investors will now take cues from the US Producer Price Index on Tuesday and CPI on Wednesday to gauge the US Federal Reserve’s likely policy path.
Aluminium prices rose as traders covered their short positions on the domestic exchange.
Copper prices erased earlier losses and turned positive due to short-covering of positions by market participants on the MCX. The fall in LME and Shanghai Futures Exchange-registered warehouses' stocks also aided prices.
Lead contracts traded higher as traders increased their long positions on the domestic bourse.
Zinc contracts traded firm as traders raised their bullish positions on the domestic exchange. The positive sentiment was further aided by higher energy prices in Europe. Energy accounts for a major portion of zinc's production cost.
At 1835 IST, on the MCX, the August futures contract of:
–Aluminium was at 216.00 rupees a kg, up 0.8%
–Copper was at 784.55 rupees a kg, up 1%
–Lead was at 187.90 rupees a kg, up 0.6%
–Zinc was at 259.65 rupees a kg, up 0.8%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 214.00-218.50 rupees
–Copper seen at 776.40-793.60 rupees
–Lead seen at 186.30-189.40 rupees
–Zinc seen at 253.00-263.10 rupees
End
US$1 = 83.97 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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