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Informist, Wednesday, Nov. 13, 2024

By Sandeep Sinha

MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange due to concerns about demand from top consumer China. Market sentiment was dampened by continued liquidation by traders on the LME and Shanghai Futures Exchange.

"Most base metals are likely to fall as top consumer China's latest stimulus package fell short of expectations," broking firm AngelOne said in a note. Investors have also been worried about US President-elect Donald Trump's threats to impose stiff tariffs on China, which could dampen demand for metals, it said.

Investors will take cues from US consumer price index data and speeches by Federal Open Market Committee members John Williams and Neel Kashkari later in the day.

Sluggish corporate borrowing in China is the latest bearish signal about base metals consumption, Dan Smith, head of research at Amalgamated Metal Trading, said in a note.

However, a fall in stocks at LME-registered warehouses restricted the fall in base metal prices. Stocks of aluminium at LME warehouses declined by 2,625 tonnes to 726,700 tonnes, that of copper fell by 650 tonnes to 271,225 tonnes, and lead stocks declined by 775 tonnes to 186,350 tonnes. However, zinc stocks rose by 1,025 tonnes to 245,525 tonnes.

ALUMINIUM prices were steady due to lack of fresh cues.

COPPER prices fell due to liquidation of long positions by traders on the domestic bourse. Reliance Securities said prices are moving within a symmetrical triangle and continuously falling with an aggressive downward trend at 21-simple moving average on the hourly chart. Additionally, the Relative Strength Index is below 50 showing weakness. The brokerage recommends going short in the evening session.

LEAD prices fell taking cues from the LME and traders increasing their short positions on the MCX.

ZINC contracts underperformed other non-ferrous metals on the downside due to the liquidation of long positions by traders.

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

–Aluminium was at INR 237.15 a kg, unch

–Copper was at INR 804.40 a kg, down 0.2%

–Lead was at INR 180.10 a kg, down 0.6%

–Zinc was at INR 273.80 a kg, down 0.7%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 233.40-244.60

-Copper contract seen at INR 790.10-828.90

-Lead contract seen at INR 177.60-187.40

-Zinc contract seen at INR 268.10-280.0

End

US$1 = INR 84.38

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

Edited by Ashish Shirke

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