Informist, Friday, Jun 2, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals rose today on the Multi Commodity Exchange of India and the London Metal Exchange on weakness in the dollar and improved risk appetite after the US Senate passed the bill to raise the debt ceiling.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 103.48. A weaker greenback makes dollar-denominated commodities such as non-ferrous metals cheaper for holders of other currencies.
“Industrial metals rose across the board amid resolution of the debt-ceiling crisis, a weaker greenback and prospects of further economic support from Beijing,” Kotak Securities said in a note.
ALUMINIUM prices rose as traders increased their long positions on the domestic exchange.
COPPER prices gained on hopes of a fresh stimulus from China and a decline of 850 tn in stocks at LME-accredited warehouses. Sentiment for the red metal was also boosted by rising expectation that the US Federal Reserve will not raise interest rates at its June meeting.
LEAD contracts rose on short-covering of positions by traders on the MCX.
ZINC contracts continued to outperform other base metals as traders were forced to cover short positions with value buying taking place at a lower level.
* At 1800 IST, on the MCX, the June futures contract of:
–Aluminium was at 209.65 rupees a kg, up 0.6%
–Copper was at 722.90 rupees a kg, up 1%
–Lead was at 182.0 rupees a kg, up 0.5%
–Zinc was at 210.55 rupees a kg, up 1.6%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 206.20-212.0 rupees
–Copper seen at 715.0-728.0 rupees
–Lead seen at 179.0-183.50 rupees
–Zinc seen at 207.50–213.0 rupees
End
US$1 = 82.30 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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