India Base Metals
Up on hope of China fiscal stimulus, fall in inventories
This story was originally published at 16:47 IST on 10 January 2025
Register to read our real-time news.Informist, Friday, Jan. 10, 2025
By Ashutosh Pati
MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange Friday on expectations that China would follow through on its recent commitments to increase monetary and fiscal stimulus, analysts said. In his New Year's Day speech, China's President Xi Jinping pledged more proactive economic policies to support growth in 2025.
Market sentiment was also lifted by a fall in inventories at warehouses registered with the Shanghai Futures Exchange. Aluminium stocks fell by 11,071 tonnes on-week to 182,168 tonnes and copper inventories declined 4,496 tonnes on-week to 78,678 tonnes. Zinc inventories at Shanghai Futures Exchange monitored warehouses fell by 2,578 tonnes to 21,334 tonnes and lead stocks declined 3,719 tonnes from the previous week to 44,854 tonnes.
However, concerns about the potential trade tariffs after US President-elect Donald Trump takes over continue to represent a risk to prices. Investors will monitor the US non-farm payrolls data, due later in the day, for further cues.
COPPER contracts edged higher due to hopes of fresh stimulus from top consumer China. Prices also found support from strong demand projections linked to electric vehicles and renewable energy technologies, Kotak Securities said in a report.
ZINC prices rose as a zinc smelter in South Korea closed production for two months due to a breach of environmental regulations, Commerzbank AG said in a report.
At 1624 IST, on the MCX, the January futures contract of:
–Aluminium was at INR 244.75 a kg, up 1%
–Copper was at INR 827.10 a kg, up 0.3%
–Lead was at INR 177.75 a kg, up 0.8%
–Zinc was at INR 274.20 a kg, up 1%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 240.45-246.95
-Copper contract seen at INR 815.00-837.00
-Lead contract seen at INR 175.20-178.90
-Zinc contract seen at INR 267.90-277.90
End
US$1 = INR 85.96
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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