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Informist, Friday, Oct. 11, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India Friday, tracking gains on the London Metal Exchange, because of rising hope of additional stimulus measures from top consumer China at a press briefing on Saturday. 

China's Finance Minister Lan Fo'an will hold a press briefing on fiscal policy on Saturday. "Hopes are now pinned on a briefing by the Chinese Ministry of Finance on Saturday. Potential announcements will be crucial for the economic outlook in the fourth quarter and thus set the direction for metal prices," Commerzbank said in a report.

China announced a slew of policy measures last month, such as liquidity injections, mortgage rate reduction, and relaxed house purchase limitations, following which base metals prices rallied. "The flurry of policy announcements from Beijing has raised hopes that commodity markets would see a welcome boost to demand. However, so far, they have fallen well short of expectations," Daniel Hynes, analyst at ANZ research, said in a note.

For further cues, investors await key economic data from the top consumer and producer of non-ferrous metals China next week. The Consumer Price Index and the Producer Price Index are due Monday while the industrial production and retail sales data are due Friday. 

COPPER prices rose, taking cues from the LME on hopes of more stimulus from China. The upside in prices of copper could be capped as stocks at warehouses monitored by the Shanghai Futures Exchange rose 14,860 tonnes from last week to 156,485 tonnes.

ALUMINIUM prices rose sharply, tracking gains on the LME. Inventories at LME-registered warehouses fell by 2,500 tonnes to 770,275 tonnes. 

ZINC prices rose on MCX, taking cues from LME. "Ferrous and power prices still traded higher, which supports zinc prices," Al Munro, strategist at London-based brokerage Marex said in a note.

At 2004 IST, on the MCX, the September futures contracts of:

- ALUMINIUM was at INR 240.95 per kg, up 1.5%

- COPPER was at INR 838.2 per kg, up 0.7% 

- LEAD was at INR 183.70 per kg, up 0.8%

- ZINC was at INR 287.45 per kg, up 1.7% 

Trading levels for the day on the MCX:

- Aluminium contract seen at INR 232.90-INR 245.10 

- Copper contract seen at INR 816.00-INR 853.00 

- Lead contract seen at INR 179.10-INR 185.30 

- Zinc contract seen at INR 276.90-INR 292.10

End

US$1 = INR 84.06

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

Edited by Deepshikha Bhardwaj

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