India Base Metals: Most fall on MCX as rupee firm against dollar

Informist, Monday, Jul 4, 2022

By Sayantan Sarkar

MUMBAI – Futures contracts of most base metals fell today on the Multi Commodity Exchange of India due to a rise in rupee against the dollar. A stronger rupee makes commodities priced in the greenback cheaper. 

* Fears over recession in major economies around the world also weighed on COPPER prices today. 

* “Inflation and factory data fuelled concerns that central bank tightening will send economies into a recession and hurt demand for commodities,” Angel One Commodities said in a report.   

* Meanwhile, China’s policy of zero-tolerance on COVID-19 is likely to hurt demand for base metals such as copper, ALUMINIUM and ZINC as the country accounts for an estimated 20-30% of global demand for these metals. 

* In addition, industrial activity in the US slowed more than anticipated in June, which indicated that demand for metals may be lagging in the country.  

* At 1805 IST, on the MCX, the July futures contract of:

 –Aluminium was at 211.2 rupees, down 0.1% 

 –Copper was at 676.55 rupees a kg, down 0.4% 

 —LEAD was at 174.80 rupees a kg, down 0.1%

 —ZINC was at 281.40 rupees a kg, up 1.7%

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 206.2-214.0 rupees a kg

 –Copper seen at 661.0-688.0 rupees a kg

 –Lead seen at 170.60-177.20 rupees a kg

 –Zinc seen at 272.4–281.9 rupees a kg

End

US$1 = 78.95 rupees

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

Edited by Deepshikha Bhardwaj

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