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Informist, Tuesday, Jan. 14, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange on Tuesday as market participants remain optimistic about China's monetary and fiscal stimulus pledge, analysts said. Market sentiment was boosted by a fall in inventories at warehouses registered with the LME.

Aluminium stocks at LME-accredited warehouses fell by 2,500 tonnes to 616,875 tonnes and copper inventories fell by 1,550 tonnes to 261,900 tonnes. Zinc inventories fell by 1,150 tonnes to 209,475 tonnes and lead stocks fell by 2,600 tonnes to 220,575 tonnes.

"Base metals edged higher following encouraging trade data from China. Its commodity imports for December remained relatively strong, reflecting the modest improvement in manufacturing activity in Q4 2024," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. China's imports of copper products rose 21.8% on year to 602,000 tonnes, the highest since October 2020.

However, any further upside in base metal prices was capped due to concerns about potential trade tariffs under US president-elect Donald Trump's second tenure. Market participants now await the US core producer price index and a speech by Federal Open Market Committee member Jeffrey Schmid, both due later in the day. They will also monitor the US consumer price index to be released on Wednesday.

ALUMINIUM prices rose due to concerns over falling stocks at LME-accredited warehouses. Inventories have fallen over 45% since May 2024. Traders raising their bullish bets on the domestic exchange also aided prices.

ZINC contracts edged higher due to signs of improving demand for steel in China. The metal is used for galvanisation.

At 1701 IST, on the MCX, the January futures contract of:

–Aluminium was at INR 246.70 a kg, up 0.2%

–Copper was at INR 829.65 a kg, up 0.2%

–Lead was at INR 176.90 a kg, down 0.2% 

–Zinc was at INR 273.7 a kg, up 0.2%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 243.90-250.50

-Copper contract seen at INR 819.20-841.10

-Lead contract seen at INR 174.80-178.90

-Zinc contract seen at INR 268.60-279.10

End

US$1 = INR 86.63

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Ashish Shirke

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