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Informist, Tuesday, Nov. 12, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange Tuesday as the dollar extended gains for the third consecutive day. The sentiment was also weighed down as traders remain concerned about the potential trade tariffs that US president-elect Donald Trump might impose on Chinese goods after taking office, analysts said.

“With little focus being paid to the effectiveness of subsequent support from China, we anticipate that the dollar will remain the primary factor influencing metal prices this week,” Daria Efanova, head of research at Sucden Financial, said in a note.

At 1650 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 105.83.

However, China is planning to cut taxes for home purchases as the government dials up fiscal support to revive a moribund housing market, CNBC reported. The plan to cut property taxes could raise investors’ expectations and boost demand for metals in the country.

For further cues, investors await the US CPI data due Wednesday and US core retail sales data due Friday. They will also watch out for China’s industrial production data and retail sales due Friday.

COPPER prices fell, taking cues from the LME, due to a firm dollar. Weak demand and pressures on local smelters facing profitability challenges in China also weighed on prices, Kotak Securities said in a report.

ZINC prices fell, taking cues from the LME, as inventories at warehouses registered with the LME rose by 1,025 tonnes to 245,525 tonnes.

At 1650 IST, on the MCX, the November futures contracts of:

-ALUMINIUM was at INR 236.85 per kg, down 0.8%

-Copper was at INR 807.75 per kg, down 1.7%

-LEAD was at INR 180.85 per kg, down 0.2%

-Zinc was at INR 274.4 per kg, down 1.6%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 230.35-242.65

-Copper contract seen at INR 802.00-840.00

-Lead contract seen at INR 178.70-183.00

-Zinc contract seen at INR 270.35-285.45

End

US$1 = INR 84.39

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

Edited by Rajeev Pai

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