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Informist, Wednesday, Aug 14, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of COPPER rose today on the Multi Commodity Exchange of India and the London Metal Exchange because of the weakness in the dollar ahead of US inflation dt, due later today. The positive sentiment in copper was also aided by concerns over supply disruption in top producer Chile.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.2% at 102.45. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.

The major union at the Escondida copper mine in Chile failed to reach a wage agreement with mining giant BHP. "The mine accounts for about 5% of the global copper mine supply, and the potential disruption will worsen the already tight supply conditions of the global copper concentrate market," ING Economics said in a report.

"Base metals are trading higher as investors assessed the outlook for US rate cuts," Kotak Securities said in a report. "Investors are now focusing on the US CPI data due later in the day for further insight into inflation," the broking firm said.

ALUMINIUM prices pared earlier losses and turned positive as traders reduced their short positions on the domestic exchange. The fall in stocks by 3,700 tn on the LME-reported warehouses also aided the prices.

LEAD contracts traded higher as traders increased their long positions on the domestic bourse.

ZINC contracts outperformed other base metals as market participants trimmed their short positions on the MCX. The latest LME Commitments of Traders Report showed traders increased their bullish positions by 1,432 lots to 18,735 lots as of Aug 9.

At 1730 IST, on the MCX, the August futures contract of:

–Aluminium was at 217.75 rupees a kg, up 0.8%

–Copper was at 791.10 rupees a kg, up 0.6%

–Lead was at 186.80 rupees a kg, up 0.6%

–Zinc was at 259.75 rupees a kg, up 1.5%

Outlook for the evening session on the MCX:

–Aluminium contract seen at 214.00-222.00 rupees

–Copper seen at 780.00-798.00 rupees

–Lead seen at 185.00-191.00 rupees

–Zinc seen at 254.00-264.00 rupees

End

US$1 = 83.95 rupees

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

Edited by Deepshikha Bhardwaj

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