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Informist, Monday, Oct. 7, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of COPPER and ALUMINIUM on the Multi Commodity Exchange of India fell because of profit-booking as market participants looked for additional cues on demand for these metals following a rally sparked by stimulus measures in China, analysts said. 

"The market still awaits clues on how the stimulus measures announced by China earlier this week, which include grid investments and renewed credit lines for heavy industries, could lead to meaningful support for metals," SMC Research said in a note. Any sustained pick-up in base metal prices is likely to hang on more concrete details of the fiscal stimulus measures that Beijing promised, Daniel Hynes, analyst at ANZ Research, said in a note.

However, further downside in copper and aluminium prices was prevented due to a weaker dollar, which makes commodities priced in the greenback cheaper for holders of other currencies. At 1931 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 102.43.  

Copper prices on the MCX fell, tracking losses on the London Metal Exchange, because of profit-taking. However, copper has held close to the $10,000 per tonne mark on LME as copper smelter industry players are reportedly discussing closing capacity amid low processing fees, Dow Jones quoted SP Angel analysts as saying in a note. A shutdown of smelter capacity could, instead, provide some upward momentum to refined copper prices, as China looks to revive its economy with fiscal stimulus, they said.

Aluminium prices fell as traders booked profits, analysts said. However, challenges related to bauxite production in Guinea and Australia have heightened concerns about alumina security, supporting aluminium prices, Motilal Oswal said in a note.

Prices of ZINC were steady with an upward bias. "European gas and power prices have been trading higher of late which provide further support to zinc prices,"Al Munro, strategist at London-based brokerage Marex said in a note.

At 1932 IST, on the MCX, the September futures contracts of:

- Aluminium was at INR 242.25 per kg, down 0.3%

- Copper was at INR 851.35 per kg, down 0.5% 

- LEAD was at INR 186.60 per kg, up 0.1%

- Zinc was steady at INR 287.80 per kg 

Trading levels for the day on the MCX:

- Aluminium contract seen at INR 235.50-INR 246.70 

- Copper contract seen at INR 847.00-INR 864.00 

- Lead contract seen at INR 183.20-INR 189.20 

- Zinc contract seen at INR 280.40-INR 293.20

End

US$1 = INR 83.98

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

Edited by Avishek Dutta

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