Informist, Thursday, Nov 30, 2023
By J Navya Sruthi
MUMBAI – Futures contracts of most base metals fell today on the Multi Commodity Exchange of India, tracking a fall on the London Metal Exchange because of weaker-than-expected economic data from China.
The sentiment was also hurt by a firm dollar, which makes dollar-denominated commodities such as non-ferrous metals expensive for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was up 0.5% at 103.28 due to short-covering ahead of the US inflation data due later today.
According to the National Bureau of Statistics, China’s official manufacturing purchasing managers index fell to 49.4 on month in November from 49.5 in October, the second straight month of contraction. However, the forecast for November was 49.7.
A reading below 50 indicates a contraction in economic activity and a number above 50 signals an expansion.
However, the downside in non-ferrous metals was restricted due to a fall in Euro area core consumer price index data. The core CPI data fell to 3.6% on year in November, lower than 4.2% in October and a forecast of 3.9%. Europe is one of the biggest consumers of base metals.
Investors will now take cues from the US personal consumption expenditure price index data, jobless claims, and a speech by a Federal Open Market Committee member, John William, due later today.
ALUMINIUM prices fell as traders increased their short positions on the domestic exchange.
COPPER was down because of weak economic data from top consumer China and a recovery in the dollar. The sentiment was also hurt by a rise in stocks by 300 tn at LME-accredited warehouses.
LEAD contracts were flat due to a lack of fresh triggers.
ZINC contracts traded lower as global refined zinc surplus widened to 475,000 tn in the first nine months of 2023 from 47,000 tn in the same period last year, according to the latest data from the International Lead and Zinc Study Group.
At 1810 IST, on the MCX, the December futures contract of:
–Aluminium was at 202.40 rupees a kg, down 0.1%
–Copper was at 713.90 rupees a kg, down 0.1%
–Lead was at 186.05 rupees a kg, unch
–Zinc was at 223.20 rupees a kg, down 0.7%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 201.20-204.0 rupees
–Copper seen at 712.00-721.00 rupees
–Lead seen at 184.80-187.00 rupees
–Zinc seen at 220.0-226.00 rupees
End
US$1 = 83.40 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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