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Informist, Thursday, Oct. 10, 2024

By Ashutosh Pati

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

Aluminium and zinc prices rose on the MCX, tracking gains on the London Metal Exchange because of hopes of additional stimulus measures from China at a press briefing later this week, analysts said. The positive sentiment was supported by a fall in stocks at warehouses registered with the LME.

China's Finance Minister Lan Fo'an will hold a press briefing on fiscal policy on Saturday, according to various media reports. "The impacts of further rollouts on stimulus (in China) will continue to impact prices and any positive cues will boost base metal prices," Motilal Oswal said in a note. China is the world's biggest consumer and producer of non-ferrous metals and additional stimulus measures will spur demand for metals and support prices.

Aluminium inventories at LME-registered warehouses fell by 2,500 tonnes to 772,775 tonnes and zinc stocks fell by 1,575 tonnes to 242,450 tonnes. BMI, a unit of Fitch Solutions, hiked its zinc price forecast for 2024 to $2,700 per tonne from $2,600 earlier due to tighter market fundamentals, Kedia Advisory said in a note. 

Copper prices fell on the MCX, taking cues from the LME because of weak demand. Sentiment was also hurt as inventories at warehouses registered with the LME rose by 4,525 tonnes to 299,350 tonnes. 

For further cues, investors await the US consumer price index later in the day and the US Producer Price Index on Friday.

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

- Aluminium was at INR 233.55 per kg, up 0.4%

- Copper was at INR 825.85 per kg, down 0.2% 

- Lead was at INR 180.60 per kg, down 0.6% 

- Zinc was at INR 278.20 per kg, up 0.6%

Trading levels for the day on the MCX:

- Aluminium contract seen at INR 228.05-INR 236.80 

- Copper contract seen at INR 818.00-INR 839.00 

- Lead contract seen at INR 177.75-INR 184.45

- Zinc contract seen at INR 274.60-INR 280.00

End

US$1 = INR 83.97

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

Edited by Manisha Baxla

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