More Stories

Informist, Wednesday, Oct. 23, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange because of a firm dollar. A stronger greenback makes dollar-denominated commodities, such as base metals, expensive for holders of other currencies. Sentiment was also hurt as the International Monetary Fund downgraded China's GDP forecast for 2024, analysts said.

At 1633 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 104.40.

The International Monetary Fund cut China's 2024 growth rate to 4.8% for this year from 5% in July, with a boost from net exports partly offsetting continued weakness in the property sector and low consumer confidence, according to media reports. The International Monetary Fund's remarks that China's economic stimulus measures have been insufficient to stimulate the economy weighed on prices of base metals, Kotak Securities said in a note.

China's GDP expanded 4.6% on year in the third quarter of 2024, while economists polled by Reuters expected GDP to have grown 4.5% on year. The growth, however, was below the previous quarter's 4.7% print. China is the biggest producer and consumer of non-ferrous metals and positive economic data from the country could boost demand for metals.

For further cues, investors await the US flash manufacturing purchasing managers' index and the flash services purchasing managers' index due Thursday.

ALUMINIUM prices rose, taking cues from the LME because of signs of supply tightness in the raw material markets. Alumina, the raw material used to produce aluminium, closed in on a record high as traders raced to secure supplies following a disruption to exports in Guinea, Daniel Hynes, analyst at ANZ research, said in a note.

COPPER prices fell sharply, taking cues from the LME because of a firm dollar. Global production of refined copper rose 5.1% on year to 18.33 million tonnes in Jan-Aug, the International Copper Study Group said in a report.

At 1633 IST, on the MCX, the October futures contracts of:

-Aluminium was at INR 239.70 per kg, up 0.1%

-Copper was at INR 807.00 per kg, down 1.5% 

-LEAD was at INR 180.65 per kg, down 0.4% 

-ZINC was at INR 288.25 per kg, down 0.5%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 235.20-INR 245.70 

-Copper contract seen at INR 800.00-INR 822.00 

-Lead contract seen at INR 179.10-INR 183.90

-Zinc contract seen at INR 283.30-INR 293.85

End

US$1 = INR 84.08

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

Edited by Vidhi Verma

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.