Informist, Tuesday, Aug 16, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of most base metals were down today on the Multi Commodity Exchange of India, due to an overnight fall in contracts on the London Metal Exchange and Shanghai Futures Exchange because of weak Chinese economic data and rebound in the dollar on safe-haven demand.
* In China, retail sales rose 2.7% on year in July compared with 3.1% in June due to tepid public spending. Industrial production rose 3.8% on year last month compared 3.9% in June due to weaker growth in materials for home-building activities, lower demand for homes, and a fall in semiconductor production.
* Concerns about slowing industrial activity in Europe and China due to severe water crises and power rationing have dampened demand for non-ferrous metals.
* The dollar index gave a fresh breakout above the 106.40 level and rose 0.3% to 106.85. A firm greenback makes dollar-denominated commodities such as non-ferrous metals expensive for holders of other currencies.
* ZINC contracts rose nearly 5% on the domestic bourse after European giant Nyrstar said that smelting plants at Budel in The Netherlands will be put on care and maintenance from Sep 1.
* COPPER prices were down despite China’s imports jumping 9.3% on year to 463,693 tn in July because of weak downstream demand and slowdown in real estate sector. Rise in net short positions to 28,500 lots last week on COMEX, as per Commodity Futures Trading Commission data, also weighed on the price of the metal.
* “Commodities may remain volatile as market players continue to look at economic numbers and central banks to gauge demand outlook as well as monetary policy stance,” Kotak Securities said in a note to clients. “Growth worries and shaky risk sentiment may keep pressure on commodities at large,” it added.
* MCX was shut Monday on account of Independence Day.
* At 1720 IST, on the MCX, the August futures contract of:
–ALUMINIUM was at 212.30 rupees, down 0.1%
–Copper was at 667.90 rupees a kg, down 1.2%
–LEAD was at 185.25 rupees a kg, up 0.3%
–NICKEL was at 1,878.0 rupees a kg, down 0.1%
–Zinc was at 338.3 rupees a kg, up 4.9%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 208.80-216.20 rupees a kg
–Copper seen at 658.00-675.0 rupees a kg
–Lead seen at 182.20-187.0 rupees a kg
–Nickel seen at 1,840.0-1,910.0 rupees a kg
–Zinc seen at 330.0–343.50 rupees a kg
US$1 = 79.65 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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