India Base Metals: Up on firm China economic data, weak dollar

Informist, Wednesday, Dec 27, 2023

By J Navya Sruthi

MUMBAI – Futures contracts of base metals traded in green today on the Multi Commodity Exchange of India, tracking those on the London Metal Exchange because of upbeat economic data from China and continued weakness in the dollar.

The positive sentiment was supported by a decline in stocks of copper, lead and zinc at the LME-accredited warehouses.

Data by China’s National Bureau of Statistics showed industrial profits rose 29.5% on year in November as industrial activity gained momentum, supported by government stimulus measures.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 101.37, the lowest level in nearly five months.

Analysts expect the trade volumes to be thin for the rest of the week due to the holiday season in international markets.

Also, rising prospects of interest rate cuts by the Federal Reserve as early as March pushed non-ferrous metals prices higher, SMC Global said in a note.

Investors are now waiting for the US Richmond manufacturing index to be released later today for further cues.

ALUMINIUM prices rose as traders raised their long positions on the domestic exchange.

COPPER prices gained on the MCX because of the weak dollar and supply disruptions in Peru and Panama. The sentiment was also lifted by a fall in stocks by 1,625 tn at LME-approved warehouses.

LEAD prices rose on LME and the domestic market, following a fall in stocks at LME-accredited warehouses by 950 tn.

ZINC contracts traded higher on LME and MCX because of a fall in stocks by 1,825 tn at LME-registered warehouses.

At 1746 IST, on the MCX, the January futures contract of:

–Aluminium was at 210.90 rupees a kg, up 1.5%

–Copper was at 735.20 rupees a kg, up 0.4%

–Lead was at 183.10 rupees a kg, up 0.1%

–Zinc was at 231.60 rupees a kg, up 1.1%

Outlook for the evening session on the MCX:

–Aluminium contract seen at 200.2-215.8 rupees

–Copper seen at 731.5-739.7 rupees

–Lead seen at 181.3-184.6 rupees

–Zinc seen at 227.0-236.0 rupees

End

US$1 = 83.35 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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