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India Base Metals: All down on stronger dollar, slowdown concerns

Informist, Monday, Jul 11, 2022

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and London Metal Exchange fell today as the dollar index steadied on safe-haven demand and increased risk-off trade amid worries over a global economic slowdown. A resurgence of COVID-19 cases in China, the top consumer, also weighed on sentiment. 

 

* The dollar index, which measures the strength in the greenback against a basket of major currencies, was up 0.6% at 107.61, its highest level in nearly two decades. A stronger greenback makes dollar-denominated commodities such as non-ferrous metals expensive for holders of other currencies.

 

* “Investors are fretting over a range of threats to demand, from Europe’s gas crisis to a US slowdown and renewed virus flare-ups in China,” said Tapan Patel, senior analyst at HDFC Securities.

 

* “COPPER extended a sharp retreat after the economic bellwether suffered one of its worst days since the depths of the pandemic in 2020 on growing fears of a global recession,” Patel said.

 

* Market players now shift their focus to the US consumer price index data, due later this week, for further cues on rate hikes by the Federal Reserve.

 

ALUMINIUM prices declined as market participants increased their short positions on the MCX. 

 

LEAD contracts fell as the price traded below the major averages with the Relative Strength Index at 31.46, indicating weakness in the price.

 

* At 1735 IST, on the MCX, the July futures contract of:

 –Aluminium was at 210.45 rupees, down 0.5% 

 –Copper was at 652.20 rupees a kg, down 1.3% 

 –Lead was at 172.80 rupees a kg, down 0.5%

 —ZINC was at 278.30 rupees a kg, down 0.2%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 206.0-214.0 rupees a kg

 –Copper seen at 642.0-662.0 rupees a kg

 –Lead seen at 170.50-176.0 rupees a kg

 –Zinc seen at 275.50–283.0 rupees a kg

 

End

US$1 = 79.43 rupees

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

 

Edited by Tanima Banerjee

 

 

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.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to [email protected]

 

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

 

Source: Cogencis

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