India Base Metals: Up on positive econ data from US, China
Friday, Jan 17
By Roshni Devi
MUMBAI – Futures contracts of base metals on the Multi Commodity Exchange of India rose today as positive economic data from the US and China buoyed demand outlook, analysts said.
According to data released by the US Commerce Department, retail sales in the country rose 0.3% in December, in line with market expectation. Sales, excluding automobiles, were 0.7% higher.
US jobless claims declined by 10,000 to 204,000 in the week to Saturday, more than market expectation of a fall to 217,000.
The Philadelphia Federal Reserve’s manufacturing business outlook survey rose to 17.0 in January from 2.4 in December.
China’s GDP grew 6.0% in Oct-Dec, also in line with market expectation, while industrial production in the country rose to 6.9% in December against the market’s estimate of 5.9%.
Sentiment for base metals also improved after the US and China signed their phase-one trade deal on Wednesday.
China and the US are the largest consumers of industrial metals.
Copper inventory at warehouses accredited to the London Metal Exchange fell to a 10-month low of 125,250 tn as on today, supporting the red metal.
Indian Railways’ target to lay zinc-coated rails and replace roofs of asbestos sheets at stations with galvanized zinc is seen boosting demand in India, Hindustan Zinc was quoted as saying by reports.
At 1700 IST, on MCX, the January futures contract of:
–aluminium was at 140.80 rupees a kg, up 0.3%
–copper was at 455.95 rupees a kg, up 0.5%
–lead was at 151.90 rupees a kg, up 0.1%
–nickel at 1,022.40 rupees a kg, up 0.7%
–zinc at 183.55 rupees a kg, up 0.4%
On MCX, the January copper contract is seen at 448-457 rupees per kg, while the same-month nickel contract is seen at 1,000-1,029 rupees per kg in the evening session. The January contract of zinc is seen at 181-185 rupees per kg and the same-month aluminium contract is seen at 139.5-143.0 rupees per kg, Angel Broking said in a report. End
US$1 = 71.08 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subham Mitra
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