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Tuesday, October 4, 2022

India Base Metals: Most up on stock fall, dlr down; US CPI data eyed

Informist, Wednesday, Aug 10, 2022

By Sandeep Sinha


MUMBAI – Most base metals futures rose on the Multi Commodity Exchange of India and London Metal Exchange due to a fall in inventory and weakness in the dollar ahead of the US inflation data. A weaker greenback makes dollar-denominated commodities cheaper for foreign holders.


* LME stocks of ALUMINIUM fell 1,575 tn to 282,700 tn, those of COPPER down 450 tn to 126,525 tn and NICKEL fell 138 tn to 56,244 tn. While ZINC stocks jumped 825 tn to 74,100 tn, and those of LEAD stocks, however, remained unchanged at 38,800 tn.


* Market players will await the US consumer price index data to be released later today for further cues about the Federal Reserve’s stance on monetary tightening. They will also look forward to new loans, investments, house prices and industrial production data from China in the coming days.


However, the sharp upside in non-ferrous metals was capped by hawkish comments from the Federal Reserve Bank of St Louis President James Bullard stating that the central bank will keep interest rates higher for a longer period should inflation continue to surprise on the upside. 


* Zinc price gained after mining giant Glencore warned of margin squeeze at its European smelters amid higher energy prices. The problem is unlikely to go away soon as the continent heads into winter season and accounts for 30% capacity outside China which may keep price supported in the near term.


* Copper price traded firm after authorities’ lockdown the entire Guixi City in Jiangxi Province due to COVID-19. The city houses the largest copper cathode smelter in China having a refining capacity of 1 mln tn per year, according to Shanghai Metals Market.  


* Aluminium traded steady amid a decline in LME stock for the sixth successive day. A smelter in Sichuan province cut production after an accident affecting 200,000 tn capacity.


* At 1645 IST, on the MCX, the August futures contract of:

 –Aluminium was at 215.0 rupees, up 0.1% 

 –Copper was at 665.0 rupees a kg, up 0.2% 

 –Lead was at 184.15 rupees a kg, down 0.2%

 –Zinc was at 318.15 rupees a kg, up 1%


* Outlook for the evening session on MCX:

 –Aluminium contract seen at 210.70-218.90 rupees a kg

 –Copper seen at 661.10-671.0 rupees a kg

 –Lead seen at 182.80-186.70 rupees a kg

 –Zinc seen at 308.30–320.80 rupees a kg



US$1 = 79.52 rupees

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



Edited by Sushmita Mukherjee



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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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