India Base Metals: Most dn on conflicting reports over US-China deal
Thursday, Dec 5
By Roshni Devi
MUMBAI – Most base metal contracts on the Multi Commodity Exchange of India and the London Metal Exchange were in the red today as conflicting reports about progress in the US-China trade deal have kept markets on edge, analysts said.
On Tuesday, US President Donald Trump indicated that he was in no hurry to make a deal with China and that it might be better to wait until after the presidential elections in November. US Commerce Secretary Wilbur Ross supported Trump’s statement and said the president would impose another round of tariffs on Chinese goods from Dec 15 unless there were “some real reasons (to) postpone them”.
However, Bloomberg reported on Thursday that the US and China were moving “closer to agreeing on the amount of tariffs that would be rolled back in a phase-one deal despite tensions over Hong Kong and Xinjiang”.
Despite nearly two years of negotiations, both countries have performed numerous flip-flops on the deal. There is still no written phase-one agreement.
“Even if a partial agreement were to be reached in the near future, this would not mean that the trade dispute as a whole had been resolved…the problems between the US and China are far more fundamental in nature…We therefore expect markets to remain unsettled and metals prices volatile,” a report by Commerzbank AG said.
At 1744 IST, on MCX, the December futures contract of:
–aluminium was at 132.7 rupees a kg, down 0.3%
–copper was at 430.7 rupees a kg, down 0.1%
–lead was at 152.9 rupees a kg, up 0.1%
–nickel was flat at 970.0 rupees a kg
–zinc was at 183.6 rupees a kg, down 0.2%
The December contract of copper on the MCX is expected to trade at 427.6-432.5 rupees per kg, and nickel at 955.0-988.0 rupees. The same-month contract of zinc is seen at 151.6-154.5 rupees a kg in the evening session, Navneet Damani, vice president of commodities research at Motilal Oswal Financial Services, said in a report. End
US$1 = 71.28 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subham Mitra
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