Informist, Monday, Oct 9, 2023

By Ishan Rathi

MUMBAI – Futures contracts of most base metals fell today on the Multi Commodity Exchange of India and the London Metal Exchange because of a firm dollar and weak economic data from Germany. However, the downside in non-ferrous was limited by hopes of fresh demand from top consumer China after a week-long holiday.

The dollar index, which measures the strength in the greenback against a basket of major currencies, was up 0.2% at 106.50. A firm greenback makes dollar-denominated commodities such as base metals expensive for holders of other currencies.

Germany’s industrial production declined by 0.2% in August against analysts' expectation of a 0.1% fall. "The fourth consecutive monthly drop in industrial production is adding to fears that the entire economy has fallen back into recession in the third quarter," ING Economics said in a report.

For further cues, investors await speeches from the Federal Open Market Committee member Lorie Logan later today. They will also watch out for Federal Reserve's September meeting minutes and US consumer price index data due later in the week.

ALUMINIUM prices fell because of rising social inventory in China by 135,000 tn to 631,000 tn. Traders increasing their short positions on the domestic exchange also weighed on prices.

COPPER prices rose on expectation of fresh demand from China and buying by commodity trading advisers.

LEAD contracts were flat due to a lack of fresh triggers.

ZINC contracts pared earlier gains and turned red as traders increased their short positions on the MCX.

* At 1910 IST, on the MCX, the October contract of:

–Aluminium was at 205.25 rupees a kg, down 0.2%

–Copper was at 710.75 rupees a kg, up 0.7%

–Lead was at 187.60 rupees a kg, unchanged

–Zinc was at 222.50 rupees a kg, down 0.2%

* Outlook for the evening session on the MCX:

–Aluminium contract seen at 204.0-209.0 rupees

–Copper seen at 703.0-718.0 rupees

–Lead seen at 185.0-190.0 rupees

–Zinc seen at 219.75–227.0 rupees

End

US$1 = 82.26 rupees

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

Edited by Vidhi Verma

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 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.