India Base Metals
Up on risk-on tone; weak dlr, lower LME stocks aid
This story was originally published at 20:01 IST on 19 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange today owing to improved risk-on mood and buying by commodity trading advisers. The positive sentiment was supported by a fall in stocks at LME-registered warehouses and a weaker dollar.
LME stocks of ALUMINIUM fell by 3,600 tn to 885,375 tn, COPPER stocks by 975 tn to 308,075 tn, LEAD by 3,075 tn to 193,825, and ZINC stocks by 600 tn to 260,000 tn.
At 1830 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 102.19. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.
Market participants will look forward to the Chinese loan prime rate on Tuesday for further cues. They will also take cues from the US Federal Open Market Committee's July meeting minutes on Wednesday and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium later in the week.
ALUMINIUM prices rose because of buying by commodity trading advisers and a fall in China aluminium ingot stocks. Trimming of short positions by traders on the domestic exchange also boosted prices.
COPPER prices gained due to weakness in the dollar and short-covering of positions by traders on the domestic bourse.
LEAD contracts traded a tad higher as traders raised their long positions on the MCX.
ZINC contracts traded higher because of supply tightness and smelters cutting production.
At 1835 IST, on the MCX, the August futures contract of:
–Aluminium was at 223.75 rupees a kg, up 2.2%
–Copper was at 806.70 rupees a kg, up 0.7%
–Lead was at 187.90 rupees a kg, up 0.1%
–Zinc was at 265.25 rupees a kg, up 1.1%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 220.00-226.00 rupees
–Copper seen at 797.00-816.00 rupees
–Lead seen at 185.00-190.00 rupees
–Zinc seen at 258.00-268.00 rupees
End
US$1 = 83.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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