Informist, Friday, Aug 5, 2022
By Sandeep Sinha
MUMBAI – Futures contract of most base metals rose on the Multi Commodity Exchange of India and London Metal Exchange due to improved risk appetite ahead of the US non-farm payroll data, due later today.
* China’s electricity grid operator plans to invest $22 bln in the construction of ultra-high-voltage power transmission lines in the second half of the year, state-run Xinhua news agency reported. The move is likely to boost the demand for copper and aluminium as it connects renewal energy in the western parts of the country to major cities in the east.
* Speculators scrambled to cover their bearish positions on non-ferrous metals, and this also supported the positive cue.
* However, the sharp upside was cushioned by a rebound in the dollar against rival currencies. A firm greenback makes dollar-denominated commodities expensive for foreign holders.
* ALUMINIUM prices gained taking positive cues from LME and short covering of positions on the MCX.
* COPPER contract gained as traders increased their long positions on the domestic bourse amid a decline in LME stocks by 975 tn. The positive sentiment was further supported by easing fears of a global recession.
* ZINC prices fell due to profit booking after a sharp rally on Thursday and an increase in LME inventory by 3,925 tn.
* At 1658 IST, on the MCX, the August futures contract of:
–Aluminium was at 211.50 rupees, up 1%
–Copper was at 649.45 rupees a kg, up 0.5%
—LEAD was at 179.25 rupees a kg, up 0.4%
–Zinc was at 307.80 rupees a kg, down 0.2%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 209.0-214.0 rupees a kg
–Copper seen at 645.0-655.0 rupees a kg
–Lead seen at 177.30-181.50 rupees a kg
–Zinc seen at 304.0–312.0 rupees a kg
US$1 = 79.23 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Namrata Rao
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