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Informist, Friday, Aug 30, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange today because of positive US economic data and a decline in inventories in Shanghai Futures Exchange monitored warehouses. 

The US real gross domestic product increased at an annual rate of 3% in the second quarter of 2024, fuelled by strong consumer spending, private inventory investment, and non-residential fixed investment, according to the second estimate released by the US Bureau of Economic Analysis. The US economy is still resilient, which is better for base metals, analysts from Kotak Securities said. 

Investors expect a 25-basis-point rate cut in September by the US Federal Reserve, which is supporting the prices of base metals, analysts said. The odds of a 25-bps rate cut in September was 67.5% and that of a 50-bps rate cut was 32.5%, according to the CME FedWatch tool.

Investors will now take cues from China's manufacturing purchasing managers' index data due Saturday. The data is expected to play a crucial role in determining the future direction of copper prices, Dow Jones quoted Saish Sandeep Sawant Dessai, an analyst at Angel One, saying in a note.

COPPER prices rose as inventories in Shanghai Futures Exchange monitored warehouses fell by 9,317 tn from last week to 241,745 tn, according to weekly inventory data released by the exchange.

ALUMINIUM prices increased because of a fall in aluminium stocks by 1,478 tn from last week to 289,920 tn in Shanghai Futures Exchange monitored warehouses. Aluminium inventories decreased by 3,500 tn to 856,725 tn in LME-registered warehouses from Thursday.

ZINC prices rose following a fall in stocks by 872 tn from last week in Shanghai Futures Exchange monitored warehouses to 84,566 tn and a 3,300 tn fall in stocks from last week in LME-registered warehouses to 246,325 tn.

LEAD prices rose as inventories fell by 725 tn to 182,750 tn in LME-registered warehouses from the previous day.

At 1705 IST, on the MCX, the September futures contracts of:

-Copper was at 812.3 rupees per kg, up 0.6%

-Aluminium was at 228.8 rupees per kg, up 0.7%

-Zinc was at 270.4 rupees per kg, up 0.8%

-Lead was at 186.5 rupees per kg, up 0.3%

Trading levels for the day on the MCX : 

- Copper contract seen at 805-818 rupees

- Aluminium contract seen at 226-231 rupees

- Zinc contract seen at 267-274 rupees

-Lead contract seen at 185-189 rupees

End

US$1 = 83.86 rupees

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

Edited by Rajeev Pai

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