India Base Metals: Copper down on MCX, LME as firm dollar weighs

Informist, Tuesday, Jan 9, 2024

By J Navya Sruthi

MUMBAI – Futures contracts of COPPER were down on the Multi Commodity Exchange of India tracking those on the London Metal Exchange as the dollar index was up ahead of US inflation data due later this week, analysts said.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 102.45. A firm greenback makes commodities priced in the dollar more expensive for holders of other currencies.

The fall in prices of the red metal was restricted as China, the world’s top consumer of the metal, hinted at more policy easing to create favourable financial conditions for the country’s economic growth. This lifted the prices of other base metals on MCX and LME.

The People’s Bank of China may use open market operations, medium-term lending facilities, and reserve requirements, among other monetary policy tools, to provide “strong” support for reasonable growth in credit, Zou Lan, head of monetary policy department at China’s central bank, told Xinhua News Agency.

Markets will not only take cues from the US inflation data, but also from China inflation and trade balance figures for December, scheduled to be released later this week. Investors will also take cues from US Federal Reserve committee member Michael S. Barr’s speech later today.

At 1723 IST, on the MCX, the January futures contract of:

–ALUMINIUM was unchanged at 203.6 rupees a kg

–Copper was at 719.4 rupees a kg, down 0.2%

–LEAD was at 182.45 rupees a kg, up 0.1%

–ZINC was at 224.2 rupees a kg, up 0.3%

Outlook for the evening session on the MCX:

–Aluminium contract seen at 202.1-205.9 rupees

–Copper seen at 715.3-722.8 rupees

–Lead seen at 180.8-814 rupees

–Zinc seen at 221.3-225 rupees

End

US$1 = 83.11 rupees

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

Edited by Ashish Shirke

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