India Base Metals
Most up on improved risk appetite; Fed minutes eyed
This story was originally published at 19:43 IST on 21 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India, taking cues from the London Metal Exchange, because of improved risk appetite ahead of the release of the minutes of the US Federal Open Market Committee's July meeting later today. The sentiment in industrial metals was also boosted by a decline in stocks at LME-registered warehouses.
Stocks of aluminium in LME warehouses declined by 3,500 tn to 877,950 tn and copper fell by 425 tn to 319,625 tn. Lead stocks declined by 5,600 tn to 185,500 and zinc stocks by 1,175 tn to 257,625 tn.
Base metals continued to trade sideways to positive, driven by growing speculation about Jerome Powell indicating significant rate cuts at the Jackson Hole speech on Friday, Kotak Securities said in a report.
However, further upside in industrial metals was restricted by a rebound in the dollar, making dollar-denominated commodities such as base metals expensive for holders of other currencies. At 1810 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 101.51.
ALUMINIUM prices were flat as the fall in LME stocks was offset by a firm dollar.
COPPER prices gained as traders pared their short positions on the domestic bourse. The sentiment was further aided by speculators increasing their long positions in LME by 644 lots to 60,029 lots as of Aug 16, according to LME's commitment of traders report.
LEAD contracts traded higher due to a sharp fall in exchange inventory.
ZINC contracts traded higher because of supply tightness and smelters cutting production.
At 1815 IST, on the MCX, the August futures contract of:
–Aluminium was at 226.50 rupees a kg, unch
–Copper was at 803.95 rupees a kg, up 0.5%
–Lead was at 189.60 rupees a kg, up 0.3%
–Zinc was at 267.40 rupees a kg, up 1.1%
Outlook for the evening session on the MCX:
–Aluminium contract is seen at 224.00-228.00 rupees
–Copper seen at 794.00-814.00 rupees
–Lead seen at 187.00-191.00 rupees
–Zinc seen at 264.00-270.00 rupees
End
US$1 = 83.92 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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