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Tuesday, October 4, 2022

India Base Metals: All up on MCX, LME on prospects of China stimulus

Informist, Thursday, Jul 7, 2022


By Sandeep Sinha


MUMBAI – Futures contracts of all base metals edged higher on the Multi Commodity Exchange of India and London Metal Exchange today due to the prospect of further stimulus package from China to support the ailing economy hit hard by COVID-19. The positive sentiment was further boosted by firm equity markets and a decline in the US dollar.


* China is considering a $220 bln bond sale in Jul-Dec to spur infrastructure spending, according to media reports. The country is the world’s largest consumer of base metal.


* The Dollar Index slipped 0.3% to trade at 106.74, which measures the dollar strength against a basket of major currencies. A weaker greenback makes dollar-denominated commodities such as base metals cheaper for holders of other currencies.


* Non-ferrous metals have seen bargain buying in the physical market at lower levels as most of them were trading in deeply oversold territory. 


* “Commodities fell sharply in last few sessions and we are now seeing some relief rally. While we may see some extended recovery, any sustained rise is unlikely unless the US dollar index corrects sharply or there is improvement in China’s virus situation,” Kotak Securities said in a note.


ALUMINIUM prices rose as traders covered their short positions on the domestic bourse and a decline in LME stocks by 4,950 tn.


COPPER contract gained as market participants increased their long positions on the MCX and a fall in LME inventory by 425 tn. Buying emerged at the lower level as the metal was trading in an extremely oversold territory. 


* At 1625 IST, on the MCX, the July futures contract of:

 –Aluminium was at 210.60 rupees, up 1.1% 

 –Copper was at 661.45 rupees a kg, up 2.5% 

 —LEAD was at 175.80 rupees a kg, up 0.1%

 —ZINC was at 279.70 rupees a kg, up 2.3%


* Outlook for the evening session on MCX:

 –Aluminium contract seen at 205.0-212.0 rupees a kg

 –Copper seen at 640.0-665.0 rupees a kg

 –Lead seen at 173.0-178.30 rupees a kg

 –Zinc seen at 271.50–281.0 rupees a kg



US$1 = 79.17 rupees

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


Edited by Sushmita Mukherjee


For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.


Cogencis news is now Informist news. 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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Source: Cogencis

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