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Informist, Wednesday, Dec. 18, 2024

MUMBAI – Futures contracts of copper rose on the Multi Commodity Exchange of India and the London Metal Exchange Wednesday on short-covering of positions, analysts said. Sentiment was boosted as copper inventories in LME-accredited warehouses fell by 125 tonnes to 272,325 tonnes.

COPPER prices were also supported by hopes of an interest rate cut by the US Federal Reserve. The market sees a 95.4% chance of a 25-basis-point cut in interest rates, according to the CME Fedwatch tool.

However, any further upside in copper prices was limited by concerns about demand in top consumer China. The lacklustre demand for copper in China is expected to come under further pressure if US President-elect Donald Trump follows through with his threat to impose punitive tariffs on imports from the country, which could trigger a trade war and subdue growth, SMC Research said in a report.

For further cues, investors await the outcome of the US Federal Open Market Committee's monetary policy meeting, due early Thursday.

ALUMINIUM prices rose as inventories at warehouses registered with the LME fell by 2,500 tonnes to 667,525 tonnes.

ZINC prices fell as new home prices in China dropped consecutively for 17 months, reflecting continued challenges in the country's property sector, Kedia Advisory said in a note. China is the largest producer and consumer of non-ferrous metals and its property sector accounts for a major chunk of global demand for metals.

At 1807 IST, on the MCX, the December futures contract of:

–Aluminium was at INR 242.60 a kg, up 0.1%

–Copper was at INR 808.75 a kg, up 0.2%

–LEAD was at INR 178.10 a kg, down 0.3%

–Zinc was at INR 281.95 a kg, down 0.5%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 239.25-244.95

-Copper contract seen at INR 792.00-816.00

-Lead contract seen at INR 177.25-180.25

-Zinc contract seen at INR 276.80-287.40

End

US$1 = INR 84.95

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

Edited by Rajeev Pai

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