Informist, Tuesday, Jun 6, 2023
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange today, on hopes of a fresh stimulus package from China. However, the upside in non-ferrous metals was limited due to a firm dollar, which makes dollar-denominated commodities expensive for holders of other currencies.
According to media reports, China will likely cut banks’ reserve ratio and interest rates in the second half of this year to support the economy.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.2% at 104.23.
ALUMINIUM prices fell due to rise in stocks by 4,425 tn at LME-registered warehouses. Traders increasing their short positions on the domestic exchange also weighed on the prices.
COPPER prices were up on expectation of fresh stimulus from China, but the upside was restricted by a firm dollar. The LME on-warrant stocks earmarked for shipment rose to 42,375 tn, which also supported the positive cue.
LEAD contracts rose due to short-covering of positions by traders on the domestic bourse.
ZINC contracts rose because of a fall in stocks by 175 tn at LME-accredited warehouses and as market participants covered their short positions on MCX.
* At 1813 IST, on the MCX, the June futures contract of:
–Aluminium was at 204.55 rupees a kg, down 0.8%
–Copper was at 721.45 rupees a kg, up 0.1%
–Lead was at 182.90 rupees a kg, up 0.2%
–Zinc was at 209.10 rupees a kg, up 0.5%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 203.60-207.10 rupees
–Copper seen at 712.50-730.10 rupees
–Lead seen at 181.50-184.20 rupees
–Zinc seen at 207.20–211.40 rupees
End
US$1 = 82.60 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Sandeep Sinha
Edited by Ashish Shirke
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