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Informist, Tuesday, Oct. 15, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India Tuesday tracking the fall in contracts on the London Metal Exchange because of uncertainty about China's stimulus measures boosting demand, analysts said. The sentiment was further hurt by weakness in the Chinese yuan against the dollar.

The yuan fell 0.3% to 7.113 against the dollar, making dollar-denominated base metals expensive for Chinese buyers. The country is the biggest producer and consumer of base metals.

The recent downturn reflects pessimism over Chinese Finance Minister Lan Fo'an's weekend conference, which hinted at taking on more debt to shore up the economy, Dow Jones cited analysts at SP Angel as saying in a note. Doubts also persist over the government's intentions to reignite the moribund property sector--a major supporter of base metal demand--with the government focus, instead, currently on strengthening consumer demand, SP Angel analysts said.

For further cues, investors await key economic data from China such as GDP growth, industrial production and retail sales, all due Friday.

ALUMINIUM prices fell because of liquidation of long positions by traders on LME and domestic bourse.

COPPER prices fell taking cues from the LME because of lack of clarity over China's stimulus measures and weak demand. The sentiment was further dampened by selling by commodity trading advisers.

ZINC prices fell on MCX taking cues from LME because of a rise in the cost of natural gas in Europe.

At 1815 IST, on the MCX, the October futures contracts of:

-Aluminium was at INR 234.20 per kg, down 1.4%

-Copper was at INR 816.50 per kg, down 1.1% 

-LEAD was at INR 181.10 per kg, down 0.6% 

-Zinc was at INR 278.05 per kg, down 1.9%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 230.30-INR 242.40 

-Copper contract seen at INR 807.00-INR 842.00 

-Lead contract seen at INR 178.25-INR 184.65

-Zinc contract seen at INR 274.55-INR 289.65

End

US$1 = INR 84.03

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

Edited by Ashish Shirke

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