Informist, Thursday, Sep 8, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and the London Metal Exchange traded in positive territory due to short-covering, improved risk sentiment, a rally in equity markets, and weakness in the dollar.
* The positive momentum was boosted by reports that China might ease COVID-19 restrictions. The country is a top producer and consumer of base metals.
* The dollar index fell 0.3% to 109.54. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.
* COPPER prices jumped as workers at BHP’s Escondida copper mine in Chile voted to go on strike over safety concerns and a fall in LME stocks.
* Also, supporting the positive momentum was a decline in LME inventory of ALUMINIUM by 475 tn to 309,025, copper by 575 tn to 102,725 tn, LEAD by 75 tn to 37,350 tn, NICKEL by 390 tn to 53,850 tn, and ZINC by 75 tn to 77,275 tn.
* Investors will take further cues from the outcome of the European Central Bank's monetary policy meeting and US Federal Chief Jerome Powell's speech later in the day.
* Federal Reserve Vice-Chair Lael Brainard on Wednesday said inflation remains very high and is hurting low-income households. He said the policy rate had been expeditiously raised to the peak of the previous cycle, and would need to rise further. This may limit the upside in non-ferrous metals.
* Aluminium contracts gained after Speira GmBH on Wednesday said it would reduce production by 50% at a facility in Germany due to elevated energy costs. The company expects the output cut to be completed by November for an indefinite period at the plant with capacity of 160,000 tn and currently operating at 140,000 tn.
* Zinc price rose on short-covering of positions by traders on the MCX.
* At 1710 IST, on the MCX, the September futures contract of:
–Aluminium was at 200.0 rupees, up 1.3%
–Copper was at 649.05 rupees a kg, up 1.8%
–Lead was at 177.0 rupees a kg, up 0.3%
–Zinc was at 284.20 rupees a kg, up 1.2%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 196.55-201.05 rupees a kg
–Copper seen at 643.0-652.30 rupees a kg
–Lead seen at 175.70-178.25 rupees a kg
–Zinc seen at 281.20–286.0 rupees a kg
End
US$1 = 79.71 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Informist, Thursday, Sep 8, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and the London Metal Exchange traded in positive territory due to short-covering, improved risk sentiment, a rally in equity markets, and weakness in the dollar.
* The positive momentum was boosted by reports that China might ease COVID-19 restrictions. The country is a top producer and consumer of base metals.
* The dollar index fell 0.3% to 109.54. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.
* COPPER prices jumped as workers at BHP’s Escondida copper mine in Chile voted to go on strike over safety concerns and a fall in LME stocks.
* Also, supporting the positive momentum was a decline in LME inventory of ALUMINIUM by 475 tn to 309,025, copper by 575 tn to 102,725 tn, LEAD by 75 tn to 37,350 tn, NICKEL by 390 tn to 53,850 tn, and ZINC by 75 tn to 77,275 tn.
* Investors will take further cues from the outcome of the European Central Bank's monetary policy meeting and US Federal Chief Jerome Powell's speech later in the day.
* Federal Reserve Vice-Chair Lael Brainard on Wednesday said inflation remains very high and is hurting low-income households. He said the policy rate had been expeditiously raised to the peak of the previous cycle, and would need to rise further. This may limit the upside in non-ferrous metals.
* Aluminium contracts gained after Speira GmBH on Wednesday said it would reduce production by 50% at a facility in Germany due to elevated energy costs. The company expects the output cut to be completed by November for an indefinite period at the plant with capacity of 160,000 tn and currently operating at 140,000 tn.
* Zinc price rose on short-covering of positions by traders on the MCX.
* At 1710 IST, on the MCX, the September futures contract of:
–Aluminium was at 200.0 rupees, up 1.3%
–Copper was at 649.05 rupees a kg, up 1.8%
–Lead was at 177.0 rupees a kg, up 0.3%
–Zinc was at 284.20 rupees a kg, up 1.2%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 196.55-201.05 rupees a kg
–Copper seen at 643.0-652.30 rupees a kg
–Lead seen at 175.70-178.25 rupees a kg
–Zinc seen at 281.20–286.0 rupees a kg
End
US$1 = 79.71 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
