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Informist, Thursday, Nov. 7, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange Thursday, as the dollar index weakened ahead of the US Federal Open Market Committee meeting outcome later in the day. The positive sentiment was also lifted by expectations of further fiscal measures from China's ongoing National People's Congress meeting.

At 1620 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies was down 0.3% at 104.84. A weak greenback makes dollar-denominated commodities, such as base metals, cheaper for buyers holding other currencies.

According to the CME Fedwatch tool, 98.9% of market participants expect the US Federal Reserve to cut interest rates by 25 basis points. Lower interest rates could boost economic growth and raise demand for metals.  

Beijing is expected to unveil more support measures later this week which will likely boost metals prices, ING Economics said in a report. China is the top producer and consumer of non-ferrous metals and any additional fiscal measures to boost its economy could support demand for metals.

For further cues, investors await the outcome of the China's National People's Congress meeting Friday and the US Federal Open Market Committee meeting's outcome later in the day.

COPPER prices rose, taking cues from LME, because of a weak dollar. China's refined copper imports rose to 500,000 tonnes as some smelting plants remained closed for maintenance, suggesting improvement in demand.

ALUMINIUM prices rose as inventories at warehouses registered with the LME fell by 2,500 tonnes to 734,400 tonnes. 

At 1620 IST, on the MCX, the November futures contracts of:

-Aluminium was at INR 243.80 per kg, up 1.5%

-Copper was at INR 838.75 per kg, up 1.5%

-LEAD was at INR 182.05 per kg, down 0.2%

-ZINC was at INR 284.50 per kg, up 2.1%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 236.90-INR 247.50

-Copper contract seen at INR 816.00-INR 852.00

-Lead contract seen at INR 180.25-INR 184.65

-Zinc contract seen at INR 273.05-INR 291.35

End

US$1 = INR 84.37

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

Edited by Tanima Banerjee

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