India Base Metals
Most rise on hopes of stimulus from China, fall in stocks
This story was originally published at 20:28 IST on 24 December 2024
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By Ashutosh Pati
MUMBAI – Futures contracts of most base metals traded in the green on the Multi Commodity Exchange of India and the London Metal Exchange Tuesday on expectations of a fiscal stimulus from China. Market sentiment was also boosted by a fall in inventories at LME-accredited warehouses.
Chinese authorities plan to issue special treasury bonds next year worth 3 trillion yuan ($411 billion) to support economic growth, Reuters reported. The plan for 2025 sovereign debt issuance would be a sharp increase from this year's 1 trillion yuan and comes as Beijing moves to soften the blow from an expected increase in US tariffs on Chinese imports when Donald Trump takes office in January, the report said.
Adding to the bullish mood was a report from China's state-backed Global Times that foreign institutions have maintained a positive outlook on China's capital market for 2025, anticipating gradual economic stabilisation, Kedia Advisory said in a note.
Aluminium stocks at warehouses registered with the LME fell by 2,500 tonnes to 657,150 tonnes and zinc inventories fell by 3,025 tonnes to 248,950 tonnes. Lead stocks fell by 1,450 tonnes to 249,250 tonnes. Copper inventories, however, rose by 300 tonnes to 272,725 tonnes.
For further cues, investors await the US weekly jobless claims data due Thursday.
At 1957 IST, on the MCX, the January futures contract of:
–ALUMINIUM was at INR 241.95 a kg, up 0.8%
–COPPER was at INR 802.40 a kg, up 0.5%
–LEAD was steady at INR 178.35 a kg
–ZINC was at INR 281.65 a kg, up 1.1%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 241.10-250.40
-Copper contract seen at INR 783.60-808.30
-Lead contract seen at INR 172.60-178.90
-Zinc contract seen at INR 272.80-284.60
End
US$1 = INR 85.20
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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