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Informist, Tuesday, Oct. 29, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of base metals were mixed on the Multi Commodity Exchange of India Tuesday, taking cues from the London Metal Exchange. Aluminium and lead prices fell because of a firm dollar, which makes commodities priced in the greenback expensive for holders of other currencies. At 1845 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 104.63. 

However, further downside was restricted on hope of demand prospects from China and a fall in inventories in warehouses registered with the LME. China's top legislative body, the National People's Congress is planning to announce fresh fiscal package which could be worth over 10 trillion yuan ($1.4 trillion) on Nov. 8, Reuters reported. The expected fiscal package will be further bolstered if Donald Trump wins the US presidential election, the report said.

Aluminium stocks at warehouses registered with the LME fell by 2,500 tonnes to 743,700 tonnes and copper stocks fell by 1,875 tonnes to 274,225 tonnes. Lead inventories fell by 1,125 tonnes to 189,050 tonnes and zinc inventories decreased by 3,750 tonnes to 243,325 tonnes.

For further cues, investors will look at US jobs opening and labour turnover survey data and Conference Board consumer confidence data, later Tuesday. They will also watch out for China's manufacturing purchasing managers' index on Thursday and the US non-farm payroll data on Friday.

ALUMINIUM prices fell because of a firm dollar. However, further downside was cushioned by higher alumina prices on the LME and the Shanghai Futures Exchange, Al Munro, strategist at London-based brokerage Marex said in a note.

COPPER prices rose, taking cues from the LME, because of hopes of improved demand.

LEAD contracts traded in the red because market participants raised their short positions on the MCX.

ZINC contracts erased earlier losses and traded in the green as traders increased their long positions on the domestic bourse.

At 1848 IST, on the MCX, the November futures contracts of:

-Aluminium was at INR 242.20 per kg, down 0.2%

-Copper was at INR 844.20 per kg, up 0.7%

-Lead was at INR 179.65 per kg, down 0.5%

-Zinc was at INR 290.35 per kg, up 0.1%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 236.50-INR 247.30

-Copper contract seen at INR 822.00-INR 849.00

-Lead contract seen at INR 177.45-INR 182.05

-Zinc contract seen at INR 280.00-INR 296.70

End

US$1 = INR 84.07

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

Edited by Akul Nishant Akhoury

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