Informist, Thursday, Mar 23, 2023
By Sandeep Sinha
MUMBAI – Future contracts of most base metals traded lower on the Multi Commodity Exchange of India and the London Metal Exchange due to increased risk aversion and weakness in European equity markets after the US Federal Reserve raised interest rates.
The US Federal Open Market Committee increased key interest rates by 25 basis points to 4.75-5.00% on Wednesday.
The sentiment was further dampened after the Swiss National Bank today increased its policy rate by 50 bps to 1.5% to deflate rising “inflationary pressure.” The focus also will be on the Bank of England’s policy decision and US jobless claims data due to be released later today.
ZINC prices fell as 10 Chinese mills lowered the prices of steel products, according to Mysteel. The demand for rebar has slumped sharply despite the peak construction season in China, which also weighed on zinc prices as the metal is used for galvanisation.
However, the downside in non-ferrous metals was restricted as the dollar index fell 0.2% to 102.36 and touched near seven-week lows of 101.91 intraday against a basket of major currencies on reduced safe-haven demand. A weaker greenback makes dollar-denominated commodities cheaper for foreign holders.
ALUMINIUM prices moved in a tight range as traders await further cues. However, the downside was restricted due to a fall in stocks by 2,375 tn at LME-accredited warehouses.
COPPER contracts fell as traders rolled over their short positions on the domestic exchange.
LEAD prices slipped due to profit-taking by market participants on the domestic bourse.
* At 1715 IST, on the MCX, the February futures contract of:
–Aluminium was at 203.0 rupees a kg, up 0.1%
–Copper was at 769.0 rupees a kg, down 0.1%
–Lead was at 181.50 rupees a kg, down 0.4%
–Zinc was at 253.25 rupees a kg, down 0.5%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 200.0-205.0 rupees a kg
–Copper seen at 764.0-778.0 rupees a kg
–Lead seen at 178.50-184.50 rupees a kg
–Zinc seen at 250.0–256.0 rupees a kg
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 [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
