India Base Metals
All down on lack of fresh stimulus measures in China
This story was originally published at 17:18 IST on 17 October 2024
Register to read our real-time news.Informist, Thursday, Oct. 17, 2024
By Ashutosh Pati
MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India fell, tracking losses on the London Metal Exchange due to lack of fresh stimulus measures by China to support its property sector, analysts said.
At a press briefing Thursday, the Chinese minister of housing and urban-rural development, Ni Hong, pledged to expand a "whitelist" of housing projects eligible for bank financing and increase bank spending for such development to 4 trillion yuan ($561.8 billion). The housing minister said the property market had started to bottom out, according to various media reports.
The market was somewhat disappointed that no new stimulus measures were announced, ING Economics said in a note. China is the biggest consumer and producer of non-ferrous metals and its property sector accounts for a large portion of the demand for metals.
The press briefing was for the "healthy development of housing" instead of a V-shaped recovery of the property market, ANZ Research said in a note. For further cues, investors await data on China's GDP growth, industrial production and retail sales on Friday. They will also watch out for US retail sales data, due later Thursday.
ALUMINIUM prices fell due to lack of stimulus measures from China. Aluminium production in China will rise 3% on year to 11 million tonnes in the fourth quarter of the year due to a surge in hydropower generation and rising clean energy usage, ING Economics said, citing Shanghai Metals Market report. Smelters in the Yunnan province cancelled planned winter production cuts due to sufficient electricity reserves.
COPPER prices fell, taking cues from the LME, because of demand concerns.
At 1545 IST, on the MCX, the October futures contracts of:
-Aluminium was at INR 235.45 per kg, down 0.9%
-Copper was at INR 812.15 per kg, down 1.1%
-LEAD was at INR 182.00 per kg, down 0.4%
-ZINC was at INR 278.65 per kg, down 1.2%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 231.05-INR 242.35
-Copper contract seen at INR 802.00-INR 834.00
-Lead contract seen at INR 179.6-INR 185.40
-Zinc contract seen at INR 272.20-INR 287.50
End
US$1 = INR 84.07
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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