India Base Metals
Most rise on softer US inflation data, fall in LME stocks
This story was originally published at 18:36 IST on 23 December 2024
Register to read our real-time news.Informist, Monday, Dec. 23, 2024
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange as weaker-than-expected inflation data from the US eased fears of limited rate cuts next year, analysts said. Market sentiment was boosted by a fall in inventories at LME-accredited warehouses.
The US personal consumption expenditure rose 0.1% on month in November against expectations of a 0.2% rise. On a yearly basis, it was at 2.4%, up from October's 2.3% rise, but below the market expectation of a 2.5% rise. The core personal consumption expenditure rose 0.1% in November, against the 0.3% increase in October.
"The softer November PCE data reignited speculation that the Fed might deliver more rate cuts than projected, boosting sentiment across base metals despite lingering concerns over US manufacturing," Kotak Securities said in a report.
Aluminium stocks at warehouses registered with the LME fell by 2,500 tonnes to 659,650 tonnes and zinc inventories fell by 2,150 tonnes to 251,975 tonnes. Lead stocks fell by 1,775 tonnes to 250,700 tonnes. Copper inventories, however, rose slightly by 100 tonnes to 272,425 tonnes.
However, any further upside in base metals prices was capped by a firm dollar, which makes commodities priced in the greenback expensive for buyers holding other currencies, denting demand. At 1745 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 108.15.
Investors are awaiting the US conference board consumer confidence data due later in the day for further cues.
At 1745 IST, on the MCX, the December futures contract of:
–ALUMINIUM was at INR 245.40 a kg, up 1%
–COPPER was at INR 799.10 a kg, up 0.1%
–LEAD was steady at INR 176.30 a kg
–ZINC was at INR 281.55 a kg, up 0.9%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 242.20-248.60
-Copper contract seen at INR 787.10-811.70
-Lead contract seen at INR 174.50-178.90
-Zinc contract seen at INR 276.40-287.00
End
US$1 = INR 85.12
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:
