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India Base Metals: Most up on firm LME cues, tight supply

Informist, Monday, Jan 10, 2022

 

By Sandeep Sinha

 

MUMBAI – Most base metals on the Multi Commodity Exchange of India traded higher today, tracking gains on the London Metal Exchange amid firm equity markets, supply disruptions and lower stockpiles.

 

* Sentiment was further buoyed after Beijing reiterated the need to pay more attention to stabilising growth which raised hope of policy easing, said Motilal Oswal in a report.

 

* Russia said it would not make any concessions under US pressure at talks this week on the Ukraine crisis, and its demands for western security boosted riskier assets.

 

* However, rising cases of the Omicron variant of COVID-19 globally and strength in the dollar index capped the upside in metal prices. A stronger greenback makes dollar-denominated commodities expensive for foreign holders.

 

ALUMINIUM contracts soared as higher energy prices led European smelters to announce further production cuts. LME aluminium stockpiles have plunged to a 16-year low with only 540,000 tn of the commodity available for the market.

 

NICKEL contracts rose to the highest level in two months due to robust demand from the electric vehicle battery sector and a decline in LME-monitored warehouse stocks.

 

* At 1800 IST, on the MCX, the January futures contract of

 

 —ALUMINIUM was at 232.45 rupees a kg, up 0.7%

 —COPPER was at 739.25 rupees a kg, down 0.2% 

 —LEAD was at 186.50 rupees a kg, up 0.1%

 —NICKEL was at 1,575.20 rupees a kg, up 0.5%

 —ZINC was at 288.75 rupees a kg, up 0.3%

 

* Outlook for the evening session on MCX:

 

 –Aluminium contract seen at 229.00-237.50 rupees per kg

 –Copper contract seen at 732.00-748.00 rupees per kg

 –Lead contract seen at 183.80-190.00 rupees per kg

 –Nickel contract seen at 1,550.00-1,596.00 rupees per kg

 –Zinc contract seen at 257.00–293.00 rupees per kg

 

End

 

US$1 = 74.04 rupees

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

 

Edited by Tanima Banerjee

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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© Informist Media Pvt. Ltd. 2022. All rights reserved.

Source: Cogencis

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