Informist, Monday, Mar 21, 2022

By Sandeep Sinha

MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India despite positive cues from the London Metal Exchange due to a rebound in the dollar against the rupee and sell-off in the domestic equity market. 

* However, a decline in LME stockpiles, fear of supply disruption and hope of further policy support from China capped the downside. 

* Metals may continue to be volatile as the situation remains tense after Ukraine rejected Russia's ultimatum to surrender the besieged port city of Mariupol.

* Commodities traded mixed as market players continue to assess developments related to war between Russia and Ukraine as well as China’s stimulus measures to support the economy, Kotak Securities said in a note.

* ALUMINIUM prices surged after Australia banned the export of alumina and aluminium ore to Russia. Australia is the world’s largest exporter of alumina and supplies almost 20% of Russia's requirement.

* NICKEL contract on the LME continues to hit lower circuits of 5%, 8%, 12% and 15%, respectively, on each day since trading resumed on Mar 16 with the exchange monitoring market conditions and revising daily limit on review as traders rushed to unwind their positions.

* Market participants will closely track Flash Manufacturing Purchasing Managers’ Index data from Germany and the US, due later today, which may drop hints about the economic activity in March. 

* COPPER traded lower on the MCX with offloading of bets by participants tracking a decline in demand from physical markets, Motilal Oswal said in a note. Also weighed on the price is an increase in LME stockpiles by 650 tn.

* At 1724 IST, on the MCX, the March futures contract of:

 --Aluminium was at 276.35 rupees, up 2.6%

 --Copper was at 811.25 rupees a kg, down 0.6% 

 --LEAD was at 182.25 rupees a kg, down 0.3%

 --Nickel was at 2,165.0 rupees a kg, down 11.8%

 --ZINC was at 324 rupees a kg, up 1.3%

* Outlook for the evening session on the MCX:

 --Aluminium contract seen at 274.20-284.20 rupees per kg

 --Copper seen at 804.0-818.0 rupees per kg

 --Lead seen at 180.0-184.20 rupees per kg

 --Nickel seen at 2,000-2,300 rupees per kg

 --Zinc seen at 318.0–330.0 rupees per kg

End

US$1 = 76.11 rupees

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

Edited by Deepshikha Bhardwaj

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