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Informist, Wednesday, Sep 25, 2024

By Ashutosh Pati

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

Aluminium and zinc fell on MCX on account of profit booking after a sharp rise in prices Tuesday, analysts said. The sentiment was also hurt by a firm dollar, which makes commodities priced in the greenback expensive for holders of other currencies, they said.

However, aluminium prices are likely to get support from the uncertainty around alumina supply in China, as output issues from Guinea and Australia persist, ICICI direct said in a report.

Copper prices surged to their highest in two months after China unveiled support measures to aid its struggling economy, Motilal Oswal said in a report. Copper has been swinging sharply within a broad range, and these stimulus measures could act as a base to sustain positive momentum, it said.

At 1720 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 100.50.

The market sentiment for base metals remains positive in the coming months, Ajay Kedia, director at Kedia Advisory said. Prices of all base metals had risen on Tuesday as fresh measures announced by China's central bank could also boost the ailing property market. The measures are likely to revive demand for base metals in top consumer China.

"The property sector-focussed stimulus package also bolstered prospects of demand from the main metal consuming sector, which has been a drag on the world's second-largest economy," SMC Research said in a report.

The People's Bank of China lowered its one-year policy loan rate, known as the medium-term lending facility, by 30 basis points to 2.0% from 2.3% today, according to various media reports. "This policy change attempts to more effectively affect market borrowing costs while also aligning with global best practices," Kedia Advisory said in a note.

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

- Aluminium was at 233.35 rupees per kg, down 0.9%

- Copper was at 837.80 rupees per kg, up 0.2% 

- Lead was at 184.10 rupees per kg, up 0.2%

- Zinc was at 274.20 rupees per kg, down 0.3%

Trading levels for the day on the MCX:

- Aluminium contract seen at 230.80-237.95 rupees 

- Copper contract seen at 832.20-842.00 rupees

- Lead contract seen at 182.20-185.50 rupees

- Zinc contract seen at 271.80-278.10 rupees

End

US$1 = 83.59 rupees

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

Edited by Aditya Sakorkar

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