More Stories

Informist, Monday, Oct. 14, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India edged lower Monday, tracking losses on the London Metal Exchange because of weaker than expected economic data from top consumer China. Sentiment was also hurt by a rise in inventories at warehouses monitored by the Shanghai Futures Exchange.

China's consumer price index rose 0.4% on year in September, lower than the 0.6% rise forecast in a Reuters poll. On a monthly basis, the CPI remained unchanged from the previous month, according to an official release by The People's Republic of China. Additionally, the producer price index in China fell in September, slipping 2.8% on year, against the fall of 1.8% in August.

"This was the 8th month of consumer inflation but was the lowest print since June, highlighting the need for more policy support from Beijing to address growing deflation risks," Motilal Oswal said in a report.

On Saturday, China's finance minister Lan Fo'an signalled that more stimulus was on the way. He said Beijing would help local governments tackle their debt problems, support the property market, and replenish thr capital with state banks, among other measures, according to various media reports. China is the world's biggest consumer and producer of base metals and its property sector is one of the biggest users of such commodities. 

"The country's finance ministry promised more help for the struggling property market and private companies. However, it did not indicate any fresh stimulus measures that investors were hoping for," ING Economics said in a report.

Copper stocks at Shanghai Futures Exchange monitored warehouses rose by 14,860 tonnes on week to 156,485 tonnes and lead stocks rose by 3,787 tonnes to 44,566 tonnes. Aluminium and zinc stocks rose marginally to 280,953 tonnes and 80,714 tonnes, respectively.

For further cues, investors await data on China's GDP growth, industrial production and retail sales on Friday.

At 1516 IST, on the MCX, the October futures contracts of:

-ALUMINIUM was at INR 238.10 per kg, down 1.4%

-COPPER was at INR 833.85 per kg, down 0.7% 

-LEAD was at INR 181.90 per kg, down 1% 

-ZINC was at INR 284.10 per kg, down 1.5%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 234.15-INR 246.35 

-Copper contract seen at INR 818.00-INR 854.00 

-Lead contract seen at INR 179.90-INR 186.20

-Zinc contract seen at INR 278.20-INR 289.50

End

US$1 = INR 84.06

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

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.