More Stories

Informist, Monday, Dec. 16, 2024

By Ashutosh Pati 

MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange traded in the red as mixed economic data from China led to concern about demand in the country. Market sentiment was also hurt by a firm dollar, which makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies.

China's industrial production expanded 5.4% on year in November, against October's 5.3% growth, exceeding market expectations. However, retail sales in the country rose 3% on year in November, lower than expectations of 4.6% in a Reuters poll. "Despite Beijing's recent pledges for more proactive fiscal stimulus and looser monetary policy, investor sentiment remains cautious due to the lack of specific fiscal details," Kotak Securities said in a report. 

At 1823 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 107.02.

However, the downside in base metals prices was restricted by a fall in inventories. Copper stocks at warehouses monitored by the Shanghai Futures Exchange fell by 13,199 tonnes on week to 84,557 tonnes and copper inventories at LME-accredited warehouses fell by 200 tonnes. Aluminium stocks at Shanghai Futures Exchange-monitored warehouses fell by 9,875 tonnes on week to 214,501 tonnes and aluminium inventories at LME-accredited warehouses fell by 2,500 tonnes. Lead stocks at LME-accredited warehouses fell by 3,650 tonnes. Zinc inventories at warehouses monitored by the Shanghai Futures Exchange fell by 2,317 tonnes on week to 50,666 tonnes and zinc stocks at LME-accredited warehouses fell by 2,000 tonnes.

For further cues, investors await US Flash Manufacturing Purchasing Managers' Index, due later in the day. They will also watch out for the outcome of the Federal Open Market Committee's monetary policy meeting, due early Thursday. 

COPPER contracts traded lower, taking cues from the LME because of a firm dollar and concerns about demand.

ALUMINIUM prices fell as China's monthly primary aluminium production rose 3.6% on year to 3.7 million tonnes in November amid rising overseas export demand, ING Economics said in a report.

At 1827 IST, on the MCX, the December futures contract of:

–Aluminium was at INR 243.35 a kg, down 0.5%

–Copper was at INR 813.90 a kg, down 0.1%

–LEAD was at INR 179.45 a kg, up 0.1%

–ZINC was at INR 287.35 a kg, down 0.1%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 240.10-246.50

-Copper contract seen at INR 801.50-827.20

-Lead contract seen at INR 178.00-181.40

-Zinc contract seen at INR 281.40-292.50

End

US$1 = INR 84.86

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

Edited by Avishek Dutta

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.