India Base Metals
Most down on profit-taking, weak China economic data
This story was originally published at 21:08 IST on 30 September 2024
Register to read our real-time news.Informist, Monday, Sept. 30, 2024
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India, taking cues from the London Metal Exchange because of profit-taking, analysts said. The sentiment in base metals was also weighed by weak economic data from top consumer China.
Data by China's National Bureau of Statistics showed the country's official manufacturing purchasing managers' index rose to 49.8 in September from 49.1 in August, but remained in contraction territory for the fifth straight month. A reading below 50 indicates a contraction in economic activity and a number above 50 signals an expansion.
However, the downside in industrial metals was restricted by signs of improved demand from top consumer China. The People's Bank of China released a statement on Sunday that said commercial banks should, in batches, reduce interest rates on existing mortgages to no less than 30 basis points below the loan prime rate, and it is expected to cut existing mortgage rates by about 50 bps on average, according to various media reports.
COPPER prices traded in the red because of a decline in China's new export order and backlog order index. However, further downside in the red metal was restricted as BHP Group Ltd Monday said demand for copper is set to grow by around 70% to more than 50 million tonnes per annum by 2050, with an average growth rate of 2% per year.
ZINC contracts rose tracking sharp gains in steel prices as China announced further policy measures to revive the ailing economy. The metal is used for galvanisation.
Zinc prices were pushed higher as European power and gas prices surged further, Al Munro, strategist at London-based brokerage Marex said in a note.
At 1915 IST, on the MCX, the October futures contracts of:
- ALUMINIUM was at INR 237.60 per kg, down 0.8%
- COPPER was at INR 847.40 per kg, down 1%
- LEAD was at INR 183.75 per kg, down 0.3%
- Zinc was at INR 282.80 per kg, up 0.7%
Trading levels for the day on the MCX:
- Aluminium contract seen at INR 235.00-242.80
- Copper contract seen at INR 847.00-870.00
- Lead contract seen at INR 181.40-187.00
- Zinc contract seen at INR 280.00-285.00
End
US$1 = INR 83.79
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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