India Base Metals
Aluminium, zinc up on weak dollar, fall in LME stocks
This story was originally published at 18:36 IST on 5 December 2024
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By Ashutosh Pati
MUMBAI – Futures contracts of ALUMINIUM and ZINC rose on the Multi Commodity Exchange of India, tracking gains on the London Metal Exchange, where prices rose because of a weak dollar. The positive sentiment was lifted by a fall in stocks at warehouses registered with the LME.
At 1627 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was down 0.2% at 106.18. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for buyers holding other currencies, aiding demand.
Aluminium stocks at LME-registered warehouses fell by 2,600 tonnes to 687,125 tonnes. Disruptions in the supply of bauxite and alumina have resulted in a rising costs for aluminium smelters, undermining the production outlook, ANZ Research analysts said in a report. Zinc inventories at warehouses registered with the LME fell by 300 tonnes to 277,800 tonnes.
For further cues, investors will look out for the US unemployment claims data due later in the day. They will also watch out for the US non-farm payroll data due Friday.
COPPER prices edged lower, taking cues from the LME as inventories rose by 2,025 tonnes to 270,525 tonnes. Prices also fell due to the likelihood of trade tariffs that US President-elect Donald Trump has said he would impose on imports from China. Trump said an additional 10% tariff would be levied on China and 25% on all goods coming from Mexico and Canada.
At 1632 IST, on the MCX, the December futures contract of:
–Aluminium was at INR 246.20 a kg, up 0.1%
–Copper was at INR 821.25 a kg, down 0.1%
–Lead was at INR 182.10 a kg, down 0.1%
–Zinc was at INR 289.20 a kg, up 0.6%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 242.50-247.40
-Copper contract seen at INR 810.00-832.00
-Lead contract seen at INR 180.80-183.80
-Zinc contract seen at INR 282.80-292.60
End
US$1 = INR 84.73
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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