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India Base Metals: All down on concern over lockdown in Shanghai

Informist, Thursday, Jun 9, 2022

 

By Sandeep Sinha

 

MUMBAI – Future contracts of all base metals traded lower on the Multi Commodity Exchange of India and the London Metal Exchange as a lockdown will be reimposed in parts of Shanghai from Saturday, despite better than expected economic data from China.

 

* Authorities put parts of Shanghai under a two-day stay-at-home order after fresh cases of COVID-19 were detected on Wednesday, to control transmission risks. A fresh lockdown will be imposed in the south-western district of Mihang from Saturday for mass testing, which dampened the sentiment for base metals. 

 

* Exports from China jumped 16.9% on year in May and imports rose 4.1% on year last month due to reopening of the ports of Shanghai in the last week of May.

 

* “Better-than-expected export data from China has been more than offset by news that a south-western district in Shanghai will go back into lockdown from Saturday morning. It has only been free of restrictions since the beginning of June after 2 months of lockdown,” Al Munro at broker Marex said in a note.

 

* Investors will take cues from the European Central Bank’s Monetary Policy Committee meeting later today for any sign of tightening.

 

* However, the sharp downside in non-ferrous metals was capped by a fall in LME-approved warehouse inventory and weakness in the rupee, which makes commodities priced in dollars expensive for domestic buyers.

 

ALUMINIUM prices slipped as traders raised short bets on the MCX. However, the downside was cushioned by a fall in LME inventory by 3,950 tn.

 

COPPER prices fell due to demand concerns in China and a jump in LME stock by 1,275 tn. 

 

* At 1700 IST, on the MCX, the June futures contract of:

 –Aluminium was at 235.75 rupees, down 1.1%

 –Copper was at 788.50 rupees a kg, down 1.1% 

 —LEAD was at 184.4 rupees a kg, down 0.4%

 —ZINC was at 326.9 rupees a kg, down 1%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 229.0-240.0 rupees per kg

 –Copper seen at 785.0-797.0 rupees per kg

 –Lead seen at 181.0-188.0 rupees per kg

 –Zinc seen at 323.0–331.0 rupees per kg

 

End

 

US$1 = 77.77 rupees

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

 

Edited by Vidhi Verma

 

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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