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Informist, Tuesday, Aug 13, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of all base metals fell today on the Multi Commodity Exchange of India and the London Metal Exchange because of concerns about demand in top consumer China. However, the downside in non-ferrous metals was cushioned by weakness in the dollar, which makes commodities priced in the dollar cheaper for holders of other currencies.

"The manufacturing sector looks weak globally, indicating sluggish demand recovery for copper and other industrial metals," ING Economics said in a note.

At 1815 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 103.05.

The US Labor Department data today showed that the country's producer price index that measures factory gate prices rose 0.1% on month in July. Investors will now take cues from the US consumer price index, due to be released on Wednesday.

ALUMINIUM prices fell as traders reduced their long positions on the domestic exchange.

COPPER prices fell, taking cues from the LME, due to a sharp rise in exchange stocks by 9,500 tn. "The prolonged crisis in the property market doesn’t show signs of bottoming out yet and we believe this will continue to weigh on copper prices," ING Economics said.

LEAD contracts traded lower as traders increased their short positions on the domestic bourse.

ZINC contracts underperformed other base metals due to weakness in steel prices, as the metal is used for galvanisation. The sharp jump in LME-registered warehouses' stock by 23,625 tn also weighed on prices.

At 1815 IST, on the MCX, the August futures contract of:

–Aluminium was at 215.15 rupees a kg, down 0.1%

–Copper was at 785.40 rupees a kg, down 0.6%

–Lead was at 186.25 rupees a kg, down 0.5%

–Zinc was at 256.00 rupees a kg, down 1.6%

Outlook for the evening session on the MCX:

–Aluminium contract seen at 212.00-217.00 rupees

–Copper seen at 775.00-794.00 rupees

–Lead seen at 184.00-191.60 rupees

–Zinc seen at 250.00-262.00 rupees

End

US$1 = 83.97 rupees

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

Edited by Manisha Baxla

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