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Informist, Tuesday, Sep 10, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India fell today, tracking prices on the London Metal Exchange, as market participants await economic data from major economies later this week, analysts said. However, expectations of interest rate cuts in the US and Europe are likely to support prices of base metals, they added.

The market is waiting for direction, as the European Central Bank's monetary policy decision and major economic data from China and the US are due later this week, Manoj Kumar Jain, director, Prithvi Finmart, said. "Prices are likely to remain range-bound till this weekend," he added. However, the downside is limited as metals have already been oversold, Jain said. 

The downside in base metal prices was also limited due to hope of an interest rate cut by the US Federal Reserve this month, analysts said. The odds of a 25-basis-point interest rate cut by the US Federal Reserve are at 73% and that of a 50-bps interest rate cut at 27%, according to the CME Fedwatch tool.

Traders now await the US inflation data on Wednesday and the European Central Bank's monetary policy on Thursday. Moreover, markets remain hopeful that Beijing will issue more stimulus measures, given the economic uncertainty and persistent deflationary pressures, analysts said.

COPPER prices on the MCX fell, tracking losses on the LME, as China's copper imports dropped 12.3% on year in August, NIKKEI Asia reported. China's copper imports dropped to a 15-month low, analysts said.

ZINC prices fell due to weakness in steel prices, as the metal is used for galvanisation. Steel prices fell due to concerns around demand from China's construction sector.

At 1912 IST, on the MCX, the September futures contracts of:

- ALUMINIUM was at 219.3 rupees per kg, down 0.8%

- Copper was at 785.7 rupees per kg, down 0.7%

- LEAD was at 181.2 rupees per kg, down 0.2%

- Zinc was at 253.4 rupees per kg, down 0.8%

Trading levels for the day on the MCX:

- Aluminium contract seen at 217-222 rupees 

- Copper contract seen at 777-796 rupees

- Lead contract seen at 179-183 rupees

- Zinc contract seen at 251-257 rupees

End

US$1 = 83.98 rupees

Edited by Avishek Dutta

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