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Informist, Monday, Sep 23, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of base metals were mixed on the Multi Commodity Exchange of India, tracking prices on the London Metal Exchange. Prices of COPPER and LEAD fell, while those of ALUMINIUM and ZINC rose.

Copper and lead fell, mainly because of a firm dollar, analysts said. A stronger greenback makes dollar-denominated commodities expensive for holders of other currencies. Sentiment was also hurt because of profit-booking, they said.

At 1550 IST, the dollar index, which measures the strength of the dollar against a basket of major currencies, was up 0.3% at 101.07.

Aluminium prices rose because of short-covering of positions by traders on the MCX. A fall in aluminium stocks by 3,500 tn in LME-registered warehouses also helped aluminium prices, analysts said.

Despite the recent pickup in copper consumption due to seasonal demand and recent falling prices, the pace of gains in base metal prices is not what is expected, Motilal Oswal said in a report. "The only hope remaining would be the Chinese authorities taking advantage of the (US) Federal Reserve's 50-basis-point decrease, because it offers them 'wiggle room' to lower borrowing costs," the report said. 

Traders now await the US personal consumption expenditures price index and the US initial jobless claims data due later this week.

At 1638 IST, on the MCX, the September futures contracts of:

- Aluminium was at 227.90 rupees per kg, up 0.4%

- Copper was at 807.00 rupees per kg, down 0.3% 

- Lead was at 181.10 rupees per kg, down 1.1%

- Zinc was at 265.80 rupees per kg, up 0.1%

Trading levels for the day on the MCX:

- Aluminium contract seen at 223.50-232.00 rupees 

- Copper contract seen at 804.00-824.00 rupees

- Lead contract seen at 180.10-184.50 rupees

- Zinc contract seen at 260.60-268.00 rupees

End

US$1 = 83.55 rupees

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

Edited by Saji George Titus

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