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Informist, Monday, Nov. 11, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of COPPER and ALUMINIUM fell on the Multi Commodity Exchange of India and the London Metal Exchange because of a firm dollar, which makes commodities priced in the greenback expensive for buyers holding other currencies. The sentiment was also hurt as the latest fiscal measures announced by China did not meet investor's expectations.

At 1610 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 105.28.

China's consumer price index rose 0.3% on year in October, lower than the 0.4% rise in September, according to data released by the National Bureau of Statistics. Meanwhile, the producer price index that measures factory gate prices fell 2.9% on year last month.

After Donald Trump's win in the US presidential election, markets were hoping for a larger-than-expected stimulus from China. "However, our China economist thinks there may be more (fiscal measures) to come once policymakers have more clarity on what a new Trump administration may do next year," ING Economics said in a note.

The prospect of a renewed US-China trade war also weighed on sentiment in the base metals market, Daniel Hynes, senior commodity strategist at ANZ Research said in a note. For further cues, investors await a speech by the US Federal Open Market Committee member Christopher Waller on Tuesday, the US CPI data on Wednesday, and China's industrial production and retail sales data due Friday.

ZINC prices rose as inventories at warehouses monitored by the Shanghai Futures Exchange fell by 3,412 tonnes on week to 72,665 tonnes. Stocks at LME-registered warehouses fell by 725 tonnes to 244,500 tonnes.

LEAD prices rose, tracking gains on the LME as inventories at LME-registered warehouses fell by 1,100 tonnes to 187,125 tonnes.

At 1610 IST, on the MCX, the November futures contracts of:

-Aluminium was at INR 239.95 per kg, down 0.7%

-Copper was at INR 831.20 per kg, down 0.4%

-Lead was at INR 181.65 per kg, up 0.3%

-Zinc was at INR 281.60 per kg, up 0.6%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 235.30-INR 247.60

-Copper contract seen at INR 817.00-INR 844.00

-Lead contract seen at INR 179.50-INR 183.80

-Zinc contract seen at INR 272.00-INR 288.50

End

US$1 = INR 84.39

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

Edited by Tanima Banerjee

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