India Base Metals
All rise on improved risk appetite, ECB interest rate cut
This story was originally published at 20:05 IST on 30 January 2025
Register to read our real-time news.Informist, Wednesday, Jan. 29, 2025
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange due to improved risk sentiment. The positive sentiment was further supported by a fall in stocks at LME-registered warehouses and an interest rate cut by the European Central Bank.
LME stocks of aluminium fell by 2,500 tonnes to 587,850 tonnes, copper stocks declined by 25 tonnes to 256,275 tonnes, and lead stocks fell by 200 tonnes to 221,475 tonnes. However, zinc stocks remained steady at 180,725 tonnes.
The European Central Bank Thursday lowered its benchmark interest rate by 25 basis points. The interest rate on the deposit facility, main refinancing operations, and the marginal lending facility decreased to 2.75%, 2.90%, and 3.15%, respectively, the release said.
"Base metals are trading positive on Thursday as traders assessed the potential impact of US tariffs on global trade with thinner trading volumes expected due to the Lunar New Year holiday in China," Kotak Securities said in a research note. Market focus centred on the repercussions of proposed US tariffs on key metal imports like copper, aluminium, and steel, it said.
Trading volumes are expected to be lighter as Chinese markets were closed for the week-long Lunar New Year holiday until Feb. 4.
ALUMINIUM prices rose on the prospect of further sanctions on Russian aluminium by European Union. Traders increasing their bullish positions on the domestic exchange also aided prices.
COPPER prices pared earlier losses and turned positive as market players increased their long positions on the MCX.
LEAD contracts traded in the green due to short-covering of positions by traders on the domestic bourse.
ZINC contracts traded higher as market participants trimmed their short positions on the MCX.
At 1855 IST, on the MCX, the February futures contract of:
–Aluminium was at INR 252.40 a kg, up 0.2%
–Copper was at INR 831.75 a kg, up 0.4%
–Lead was at INR 179.70 a kg, up 0.3%
–Zinc was at INR 267.70 a kg, up 0.5%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 250.60-254.10
-Copper contract seen at INR 828.40-834.30
-Lead contract seen at INR 178.80-179.80
-Zinc contract seen at INR 265.70-268.40
End
US$1 = INR 86.63
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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