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India Base Metals: MCX copper hits 52-week low on demand concern

Informist, Friday, Jul 15, 2022

 

By Sandeep Sinha

 

MUMBAI – COPPER prices on the LME touched a 19-month low of $6,956 per tn and a fresh 52-week low of 601 per kg on the MCX due to weak demand outlook and fear of recession in some developed economy.
 

* Base metal futures were mixed on the Multi Commodity Exchange of India today amid weak cues from the London Metal Exchange. Contracts on LME saw a sharp selloff on Thursday on expectations of an aggressive rate hike by the US Federal Reserve to tame inflation. Weak economic data from China and strong dollar high also weighed on sentiment.

 

* China’s GDP rose 0.4% in Apr-Jun compared to 4.8% growth in Jan-Mar and fell short of analysts’ expectation of 1% rise.

 

* “As long as the picture remains dominated by concerns about recession, metals prices are likely to find themselves under pressure,” Commerzbank said in a report. It believed the sharp decline in prices since early June was excessive.

 

* Federal Open Market Committee Reserve members Christopher Waller and James Bullard said Thursday that they favoured raising rates by 75 basis points later this month. The comments helped recoup some losses as the market was anticipating a 100-basis-point hike. 

 

* Investors await the release of US retail sales data and the University of Michigan consumer survey report later today for further cues. They will also keep an eye on FOMC member James Bullard’s speech later in the day.

 

ALUMINIUM price pared earlier losses and turned positive due to short-covering of positions by traders on the MCX.

 

ZINC contract fell as China’s crude steel output in June dropped 3.3% on year to 90.73 mln tn. The metal is used for galvanization in steel-making. Traders liquidating their positions on the domestic bourse also weigh on the price. 

 

* At 1715 IST, on the MCX, the July futures contract of:

 –Aluminium was at 204.25 rupees, up 0.1% 

 –Copper was at 606.40 rupees a kg, down 1.3% 

 –LEAD was at 170.95 rupees a kg, up 1.5%

 –Zinc was at 262.70 rupees a kg, down 0.5%

 

* Outlook for the evening session on MCX:

 –Aluminium contract seen at 199.20-210.30 rupees a kg

 –Copper seen at 597.00-624.0 rupees a kg

 –Lead seen at 165.80-172.10 rupees a kg

 –Zinc seen at 259.40–268.90 rupees a kg

 

End

US$1 = 79.87 rupees

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

 

Edited by Arshad Hussain

 

 

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

 

Source: Cogencis

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