India Base Metals
Aluminium up on China stimulus hopes, fall in LME stocks
This story was originally published at 16:22 IST on 2 January 2025
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By Sandeep Sinha
MUMBAI – Futures contracts of ALUMINIUM rose on the Multi Commodity Exchange of India and the London Metal Exchange because of hopes of fresh stimulus in China. The positive sentiment was further boosted by a fall in stocks at LME-registered warehouses by 4,500 tonnes.
Caixin China General manufacturing purchasing managers' index data came in at 50.5 in December from 51.5 in November, but missed analysts' expectations of 51.7 polled by Reuters. The lower-than-expected economic data raised expectation of fresh policy support from Chinese lawmakers to spur growth in the world's second-biggest economy. A reading above 50 indicates an expansion in activity, while a number below that indicates a contraction.
The LME-monitored warehuouses' stock of aluminium fell to its lowest levels in over six months. The exchange stocks are down 43.7% from the high of 1.13 million tonnes in May to 634,650 tonnes on Dec. 31.
Investors will take further cues from the US initial jobless claims and S&P Global manufacturing purchasing managers' index data later Thursday.
COPPER prices fell as traders increased their short positions on the domestic exchange.
LEAD contracts traded with a positive bias as market participants raised their bullish positions on the MCX.
ZINC contracts underperformed other base metals as traders unwound their long positions on the domestic bourse.
At 1600 IST, on the MCX, the January futures contract of:
–Aluminium was at INR 242.85 a kg, up 0.5%
–Copper was at INR 792.40 a kg, down 0.2%
–Lead was at INR 177.90 a kg, up 0.2%
–Zinc was at INR 277.50 a kg, down 0.8%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 240.60-243.20
-Copper contract seen at INR 787.75-800.50
-Lead contract seen at INR 176.80-178.30
-Zinc contract seen at INR 275.80-281.50
End
US$1 = INR 85.75
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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