India Base Metals
Up ahead of US non-farm payroll data, fall in LME stocks
This story was originally published at 18:02 IST on 7 February 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of all base metals traded in the green on the Multi Commodity Exchange of India and the London Metal Exchange on Friday ahead of the US non-farm payrolls data later in the day. Market sentiment was lifted by a fall in inventories at warehouses registered with the LME.
ALUMINIUM inventories at LME-accredited warehouses fell 4,500 tonnes to 567,700 tonnes and COPPER inventories fell 1,650 tonnes to 247,625 tonnes. ZINC stocks fell 2,025 tonnes to 170,450 tonnes. LEAD inventories, however, rose 400 tonnes to 221,725 tonnes.
The Shanghai Futures Exchange reopened Wednesday after the Lunar New Year holidays and investors are hoping China will unveil more stimulus measures at its National People's Congress meeting in March, Motilal Oswal Financial Services said in a report. China is the major producer and consumer of non-ferrous metals and additional stimulus measures could boost demand for metals in the country.
However, the upside in base metals prices was restricted by a firm dollar. At 1720 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 107.79. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.
Market participants are waiting for China's consumer price index and producer price index, due Sunday, for further cues.
Copper prices hit a four-month high of INR 862.95 on the domestic bourse, taking cues from the LME due to concerns about tightening supply in the world's largest copper producer, Chile.
At 1732 IST, on the MCX, the February futures contract of:
–Aluminium was at INR 257.80 a kg, up 0.7%
–Copper was at INR 861.40 a kg, up 0.8%
–Lead was at INR 180.80 a kg, up 0.1%
–Zinc was at INR 271.65 a kg, up 0.9%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 252.90-261.90
-Copper contract seen at INR 849.80-874.70
-Lead contract seen at INR 179.10-183.20
-Zinc contract seen at INR 266.00-278.10
End
US$1 = INR 87.42
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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