India Base Metals
Most up on short-covering, fall in LME stocks
This story was originally published at 18:35 IST on 13 December 2024
Register to read our real-time news.Informist, Friday, Dec. 13, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange traded with a positive bias due to short-covering, improved risk sentiments and a rally in equity markets. The positive sentiment further got a boost from a fall in stocks at LME-registered warehouses and a weakness in the dollar, which makes dollar-denominated commodities cheaper for buyers holding other currencies.
LME stocks of aluminium fell by 75 tonnes to 675,025 tonnes, lead stocks declined 3,550 tonnes to 260,775 tonnes, and zinc stocks fell by 5,150 tonnes to 268,500 tonnes. However, copper inventory rose by 4,400 tonnes to 272,825 tonnes.
At 1811 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 106.95.
However, the lack of fresh stimulus announcements from the two-day Central Economic Work Conference in China limited further upside in base metals. The market focus will now shift towards the US Federal Open Market Committee's monetary policy decision next week.
ALUMINIUM prices rose due to short-covering of positions by traders on the domestic market.
COPPER prices fell because of higher production in China and a weak demand outlook. Traders raising their short positions on the domestic exchange also weighed on prices.
LEAD contracts traded in the green due to a sharp fall in LME-accredited warehouses' stocks and as traders covered their short positions on the MCX.
ZINC contracts outperformed other base metals because traders cut their short positions and a decline in warehouse stocks.
At 1811 IST, on the MCX, the December futures contract of:
–Aluminium was at INR 244.40 a kg, up 0.2%
–Copper was at INR 820.0 a kg, down 0.3%
–Lead was at INR 179.25 a kg, up 0.2%
–Zinc was at INR 289.25 a kg, up 0.7%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 242.50-245.60
-Copper contract seen at INR 815.90-825.30
-Lead contract seen at INR 178.70-180.00
-Zinc contract seen at INR 287.30-291.90
End
US$1 = INR 84.78
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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:
