Informist, Monday, Jun 5, 2023
By Sandeep Sinha
MUMBAI – Prices of copper rose on the Multi Commodity Exchange of India, tracking firm cues from the London Metal Exchange because of better-than-expected economic data from China. However, the upside was restricted due to a firm dollar and a rise in stocks at LME-accredited warehouses by 275 tn.
China Caixin services purchasing managers’ index rose to 57.1 in May from 56.4 in April, as a rise in new orders shored up a consumption-led economic recovery in the second quarter. A reading above 50 indicates expansion in economic activity and a figure below 50 signals contraction.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.3% at 104.34 on safe-haven demand. A firm greenback makes dollar-denominated commodities such as non-ferrous metals expensive for holders of other currencies.
“LME base metals are mostly trading sideways as better than expected Caixin Services PMI and resolution of US debt ceiling crisis is supportive, while stronger dollar is limiting sharp upside,” Kotak Securities said in a note.
For further cues, investors await the release of US Institute of Supply Management services PMI and factory orders data later today.
ALUMINIUM prices fell due to a rise in stocks by 6,025 tn at LME-registered warehouses. Traders taking profit on the domestic exchange also hurt the prices.
LEAD contracts traded flat as traders await fresh triggers for further direction.
ZINC contracts fell as traders increased their short positions on the MCX.
* At 1730 IST, on the MCX, the June futures contract of:
–Aluminium was at 207.05 rupees a kg, down 0.3%
–Copper was at 718.15 rupees a kg, up 0.3%
–Lead was at 182.50 rupees a kg, unch
–Zinc was at 207.80 rupees a kg, down 0.6%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 204.20-211.50 rupees
–Copper seen at 712.0-726.0 rupees
–Lead seen at 181.0-183.50 rupees
–Zinc seen at 205.0–211.0 rupees
End
US$1 = 82.67 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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