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Informist, Monday, Sep 2, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India, tracking prices on the London Metal Exchange because of concerns over demand from China. The sentiment was also weighed down by increased risk aversion.

China's Manufacturing Purchasing Managers' Index fell to 49.1 in August from 49.4 in July, the fourth straight month of contraction, according to a report released by the China Federation of Logistics and Purchasing on Saturday. A reading higher than 50 indicates expansion, while a reading below 50 denotes contraction.

The Purchasing Managers' Index continued to fall below the boom-bust line in August, indicating that the downward pressure on the economy has increased, the report cited special analyst Zhang Liqun, as saying. 

The volume in base metals is on the lower side today as the US banks and equity markets are shut for Labour Day Holiday, while electronic trading in commodities remains open.

However, the downside in base metal prices was restricted due to positive Chinese economic data. China's Caixin Manufacturing Purchasing Managers' Index rose to 50.4 in August from 49.8 in July. "The PMI data supported prices but sentiment from China has not improved," Ajay Kedia, director of Kedia Advisory, said.

ALUMINIUM prices fell due to liquidation of long positions by commodity trading advisers. 

COPPER prices fell because of demand concerns and rising stocks at CME-registered warehouses.

LEAD contracts traded lower as traders increased their short positions on the MCX.

ZINC contracts fell due to weakness in steel prices, as the metal is used for galvanisation.

At 1720 IST, on the MCX, the September futures contracts of:

- Aluminium was at 222.50 rupees per kg, down 1.3%

- Copper was at 799.50 rupees per kg, down 0.8%

- Zinc was at 264.35 rupees per kg, down 1.6%

- Lead was at 185.2 rupees per kg, down 0.3%

Trading levels for the day on the MCX:

- Aluminium contract seen at 220.80-225.80 rupees 

- Copper contract seen at 796.00-806.40 rupees

- Zinc contract seen at 263.80-267.50 rupees

- Lead contract seen at 184.20-187.40 rupees 

End

US$1 = 83.92 rupees

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

Edited by Deepshikha Bhardwaj

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