India Base Metals
Copper down on rising stocks, firm dollar
This story was originally published at 20:57 IST on 22 August 2024
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By Sandeep Sinha
MUMBAI – Copper futures fell today on the Multi Commodity Exchange of India tracking contracts on the London Metal Exchange because of rising global surplus amid concerns over demand. Sentiment for the red metal was also hurt by an increase in LME stocks and a recovery in the dollar, which makes dollar-denominated commodities such as COPPER expensive for holders of other currencies.
The International Copper Study Group's latest data showed that the global refined copper market surplus widened to 488,000 tn in Jan-Jun, against a surplus of 115,000 tn in the same period a year ago. The copper stock at LME-approved warehouses rose today by 75 tn to 319,700 tn, nearly a five-year-high.
At 1829 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 101.41. On Wednesday, the greenback tumbled to a fresh 52-week low after the US Bureau for Labor Statistics revised downward the nonfarm payrolls by 818,000 in the year to March.
Investors now look forward to US Federal Reserve Chair Jerome Powell's speech on Friday at the annual Jackson Hole Symposium for further cues on interest rate cuts.
ALUMINIUM prices rose as traders rolled over their long positions on the domestic bourse. The sentiment was further aided by a fall in stocks by 3,500 tn at LME-registered warehouses.
LEAD contracts traded higher because of improved demand from Chinese downstream companies.
ZINC contracts were flat due to lack of fresh triggers.
At 1830 IST, on the MCX, the August futures contract of:
–Aluminium was at 227.00 rupees a kg, up 0.3%
–Copper was at 800.00 rupees a kg, down 0.5%
–Lead was at 190.05 rupees a kg, up 0.3%
–Zinc was at 266.90 rupees a kg, unch
Outlook for the evening session on the MCX:
–Aluminium contract is seen at 223.40-231.00 rupees
–Copper seen at 796.30-808.80 rupees
–Lead seen at 188.60-190.80 rupees
–Zinc seen at 266.00-271.60 rupees
End
US$1 = 83.95 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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