India Base Metals
Most down as dollar firm, risk sentiment weak
This story was originally published at 16:51 IST on 29 August 2024
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By Sandeep Sinha
MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange today because of a stronger dollar, which makes commodities priced in the dollar expensive for holders of other currencies. Sentiment was also hurt by weak risk appetite and concerns about demand.
At 1525 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.2% at 101.19.
COPPER prices fell due to a sharp 8,700 tn rise in stocks at LME-reported warehouses. "BHP, the world's biggest miner, cut its forecast for Chinese demand this year and warned of a modest surplus. The company expects China's copper consumption to grow 1-2% this year," Daniel Hynes, senior commodities strategist at ANZ Research, said in a research note.
Investors will take cues from US weekly unemployment claims data due later today. They are also waiting for the US core personal consumption expenditure price index, due on Friday, for further insights into the US Federal Reserve's future interest rate path.
ALUMINIUM prices fell on a firm dollar and rise in Chinese stocks. Chinese aluminium stockpiles are at their highest level for this time of year since 2019, having risen 0.5% to 807,000 tn as on Monday, ING Economics said in a note.
LEAD prices were down as traders increased their short positions on the MCX.
ZINC contracts were steady due to lack of fresh triggers.
At 1525 IST, on the MCX, the September futures contract of:
–Aluminium was at 226.75 rupees a kg, down 0.7%
–Copper was at 803.15 rupees a kg, down 0.5%
–Lead was at 186.00 rupees a kg, down 0.6%
–Zinc was at 267.40 rupees a kg, unchanged
Outlook for the evening session on the MCX:
–Aluminium contract seen at 224.90-231.60 rupees
–Copper seen at 799.90-813.70 rupees
–Lead seen at 184.00-188.50 rupees
–Zinc seen at 245.50-270.15 rupees
End
US$1 = 83.87 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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