More Stories

Informist, Thursday, Oct. 24, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange because of a weak dollar. The positive sentiment was also lifted by a fall in inventories of metals, except zinc, at warehouses registered with the LME.

At 1713 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was down 0.2% at 104.20. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.

Prices of base metals were also supported by the interest rate cut in China, which raised hopes of stronger demand in the top consumer while investors await additional news on stimulus measures from China, SMC Research said in a note.

Stocks of aluminium in LME-registered warehouses fell by 2,500 tonnes to 750,350 tonnes and copper stocks fell by 1,300 tonnes to 278,325 tonnes. Lead inventories in LME-registered warehouses fell by 1,350 tonnes to 191,125 tonnes while zinc stocks rose by 7,000 tonnes to 239,150 tonnes. 

For further cues, investors will await the US flash manufacturing purchasing managers' index and the flash services purchasing managers' index due later Thursday and a speech by the Federal Open Market Committee member Susan M. Collins on Friday.

ALUMINIUM prices rose, taking cues from the LME, due to a weak dollar. Prices were supported by tight supplies of raw materials, alumina and bauxite, Kedia Advisory said in a note.

COPPER prices rose due to a weak dollar and potential improvement in Chinese demand.

LEAD prices rose as global production fell around 1.2% on year to 8.58 million tonnes in the first eight months of this year, data from the International Lead and Zinc Study Group showed.

ZINC prices rose as the zinc market has been rattled by a series of mine setbacks this year, dramatically tightening supplies of zinc ore and concentrate, Daniel Hynes, Senior Commodity Strategist at ANZ Research, said in a note. 

At 1713 IST, on the MCX, the November futures contracts of:

-Aluminium was at INR 244.15 per kg, up 0.3%

-Copper was at INR 840.00 per kg, up 0.4% 

-Lead was at INR 183.55 per kg, up 0.4% 

-Zinc was at INR 293.60 per kg, up 1.5%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 239.10-INR 246.90 

-Copper contract seen at INR 825.00-INR 847.00 

-Lead contract seen at INR 181.60-INR 184.80

-Zinc contract seen at INR 286.40-INR 294.20

End

US$1 = INR 84.07

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.