India Base Metals
Zinc up on China rate cut hopes, fall in LME stocks
This story was originally published at 16:40 IST on 30 December 2024
Register to read our real-time news.Informist, Monday, Dec. 30, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of ZINC rose on the Multi Commodity Exchange of India, tracking gains on the London Metal Exchange, on hopes of further interest rate cuts in top consumer China. The positive sentiment was lifted further by a fall in stocks at warehouses registered with the LME.
People's Bank of China Governor Pan Gongsheng Monday said that current monetary policy leaves room for monetary policy adjustment. However, Gongsheng said that the Chinese central bank would not cut interest rates too fast and too soon to reduce the risk of a falling yuan.
Zinc inventories at LME-monitored warehouses fell by 6,625 tonnes to 237,875 tonnes and stocks at Shanghai Futures Exchange-registered warehouses fell by 11,113 tonnes last week to 201,185 tonnes.
Zinc prices are approaching the upper Bollinger Band at INR 284 resistance. The Relative Strength Index at 62 indicates bullishness. If the price sustains above the support level, then it can trigger further upward wave, Reliance Securities said in a report. The brokerage firm recommends going long in the evening session.
Trading volumes are likely to be on the lower side as most traders are away on holiday for the New Year. Investors await the Chicago purchasing managers' index to be released later in the day.
ALUMINIUM prices rose because of a fall in LME-accredited warehouses' stocks by 9,000 tonnes to 643,650 tonnes. Traders increasing their bullish positions on the domestic exchange also aided prices.
COPPER prices were steady due to a lack of fresh cues.
LEAD contracts fell marginally because of profit-taking by traders on MCX.
At 1535 IST, on the MCX, the January futures contract of:
–Aluminium was at INR 241.80 a kg, up 0.2%
–Copper was at INR 806.40 a kg, unch
–Lead was at INR 177.80 a kg, down 0.1%
–Zinc was at INR 284.60 a kg, up 0.6%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 239.10-243.80
-Copper contract seen at INR 804.30-809.30
-Lead contract seen at INR 177.10-178.40
-Zinc contract seen at INR 281.30-285.80
End
US$1 = INR 85.54
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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