India Base Metals
Copper up on signs of Chinese economy stabilising
This story was originally published at 19:48 IST on 21 November 2024
Register to read our real-time news.Informist, Thursday, Nov. 21, 2024
By Ashutosh Pati
MUMBAI – Futures contracts of COPPER rose on the Multi Commodity Exchange of India for the fourth consecutive day following signs of stabilisation in the Chinese economy, analysts said. The sentiment was further lifted by falling copper inventories in China.
In September, the copper market slipped into a deficit of 131,000 tonnes from a surplus of 41,000 tonnes in August due to higher demand, the latest report from the International Copper Study Group said Wednesday. Copper stocks at warehouses monitored by the Shanghai Futures Exchange have fallen by 120,597 tonnes since August to 130,465 tonnes in October.
"Copper premiums on the Chinese spot market are rising, following data showing retail sales expanded in October at the fastest pace in eight months," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. "Beijing’s cut in export taxes also raised the prospect of tighter supplies globally," Hynes said.
China's commerce ministry Thursday announced a series of policy measures to boost foreign trade, Reuters reported. Following US President-elect Donald Trump's threat to impose tariffs of 60% on all Chinese goods, which has rattled Chinese manufacturers and accelerated factory relocation to Southeast Asia and other regions, exporters in the world's second-biggest economy are bracing for trade disruptions, the report said.
For further cues, investors await the US unemployment claims and Philadelphia Federal Reserve Manufacturing Index due later in the day. They will also watch out for the US flash Manufacturing Purchasing Managers' Index and the flash Services Purchasing Managers' Index due Friday.
However, the upside in base metals was restricted by the dollar rebounding, which makes commodities such as base metals, priced in the greenback, expensive for buyers holding other currencies. At 1723 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 106.69.
ALUMINIUM prices rose as traders unwound their short positions on the domestic exchange.
ZINC prices rose, taking cues from the London Metal Exchange, as inventories at exchange-registered warehouses fell by 3,700 tonnes.
At 1724 IST, on the MCX, the November futures contract of:
–Aluminium was at INR 244.65 a kg, up 0.2%
–Copper was at INR 829.40 a kg, up 1.4%
–LEAD was at INR 180.35 a kg, down 0.5%
–Zinc was at INR 280.05 a kg, up 0.3%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 237.75-251.45
-Copper contract seen at INR 803.00-833.00
-Lead contract seen at INR 179.10-183.40
-Zinc contract seen at INR 273.45-285.95
End
US$1 = INR 84.49
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
