India Base Metals
Most down on profit-taking, weak Chinses economic data
This story was originally published at 15:38 IST on 31 December 2024
Register to read our real-time news.Informist, Tuesday, Dec. 31, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India and London Metal Exchange Tuesday because of profit-taking amid thin volumes. The sentiment was also hurt by lower-than-expected economic data from China.
China's National Bureau of Statistics data Tuesday showed the country's official manufacturing purchasing manager fell to 50.1 in December from 50.3 in November. The number was below the market consensus of 50.3 and the lowest reading since September. A reading above 50 in PMI indicates expansion in the manufacturing sector.
However, the sharp downside in non-ferrous metals was restricted by weakness in the dollar and a fall in inventories at LME-monitored warehouses.
At 1525 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.2% at 107.89. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, aiding demand.
Aluminium stocks at LME-accredited warehouses fell by 4,500 tonnes to 639,150 tonnes and lead stocks fell by 2,150 tonnes to 243,725 tonnes. Zinc inventories declined 2,975 tonnes to 234,900 tonnes, while copper stocks remained steady at 271,400 tonnes.
ALUMINIUM prices were steady due to a lack of fresh triggers.
COPPER prices fell due to profit-taking by market players ahead of the New Year.
LEAD contracts extended the fall for the third straight day due to profit-taking and investors increasing their bearish positions on the MCX.
ZINC contracts traded in the red due to higher production in China. The liquidation of long positions by traders on the domestic bourses also weighed on prices.
At 1525 IST, on the MCX, the January futures contract of:
–Aluminium was at INR 241.85 a kg, unch
–Copper was at INR 798.10 a kg, down 0.5%
–Lead was at INR 177.20 a kg, down 0.1%
–Zinc was at INR 281.65 a kg, down 0.2%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 240.38-243.80
-Copper contract seen at INR 793.60-809.10
-Lead contract seen at INR 176.80-178.05
-Zinc contract seen at INR 278.75-284.90
End
US$1 = INR 85.61
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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