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Informist, Friday, Oct. 25, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India fell Friday, tracking prices on the London Metal Exchange on account of profit booking after a sharp rise in prices Thursday, analysts said. The sentiment was also hurt after stimulus measures from top consumer China failed to ease demand concerns.

China released a slew of supportive measures to boost growth, but the scale of support so far has failed to lift demand, Kedia Advisory said in a note. Prices also dropped after strong US economic data lowered expectation of an aggressive rate cut cycle by the US Federal Reserve, Daniel Hynes, senior commodity strategist at ANZ Research said in a note.

The S&P global flash US Purchasing Managers' Index rose to 54.3 in October from 54.0 in September and the Services Purchasing Managers' Index rose to 55.3 in October from 55.0 last month. According to Fed fund futures, market participants now expect interest rates in the US to be cut by 25 basis points in each of the November and December meetings.

However, the downside was limited by a fall in metal stocks, except zinc, at warehouses registered with the LME. Aluminium stocks fell by 1,650 tonnes to 748,700 tonnes and copper inventories fell by 1,550 tonnes to 276,775 tonnes. Lead stocks in LME-registered warehouses fell slightly by 650 tonnes to 190,475 tonnes.

The market will take further cues from China's Purchasing Managers' Index, the US job openings data, and the US non-farm payroll data, due next week.

ALUMINIUM prices fell because of profit-booking, analysts said.

COPPER prices fell, taking cues from LME because of demand concerns in top consumer China.

ZINC prices fell, taking cues from LME as stocks in LME-registered warehouses rose by 3,275 tonnes to 242,425 tonnes.

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

-Aluminium was at INR 240.75 per kg, down 0.5%

-Copper was at INR 836.50 per kg, down 0.3% 

-Lead was at INR 182.05 per kg, down 0.8% 

-Zinc was at INR 284.90 per kg, down 2.5%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 233.55-INR 245.45 

-Copper contract seen at INR 822.00-INR 843.00 

-Lead contract seen at INR 181.30-INR 185.40

-Zinc contract seen at INR 280.40-INR 292.20

End

US$1 = INR 84.08

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

Edited by Deepshikha Bhardwaj

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