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India Base Metals:Most down on demand concerns, Fed’s rate hike woes

Informist, Monday, Sep 19, 2022


By Sandeep Sinha


MUMBAI – Futures of most base metals fell on the Multi Commodity Exchange of India due to concerns about slowing global economic activity and strength in the dollar ahead of the US Federal Reserve rate outcome later this week.


* The dollar index, which measures the strength of the greenback against a basket of six major currencies, traded near a two-decade high, up 0.5% at 110.14 due to safe-haven demand. A firm greenback makes dollar-denominated commodities expensive for holders of other currencies.


COPPER prices may remain under pressure due to a global economic slowdown and expectations of weaker demand in the short term compared with supply prospects, which may lead to a small surplus in 2023, although the market is likely to remain tight, Fitch Solution said in a note.


* The LME is closed today on account of a bank holiday for the state funeral of Queen Elizabeth II.


* However, the downside in non-ferrous was limited after the Chinese megacity of Chengdu eased COVID-19 restrictions from today, which may boost economic activity as the southwestern city of 21 mln residents accounted for 1.7% of China’s GDP and is home to the technology and automobile industry.  


ALUMINIUM contract fell due to weakness in Chinese construction activities and the prospect of higher interest rates that may slow the economic growth outlook and reduce the demand for metals. 


ZINC prices slipped due to liquidation of long positions by traders on the MCX. Fitch Solutions lowered demand for next year owing to inflationary and recessionary pressures along with higher energy prices.


* At 1632 IST, on the MCX, the September futures contract of:

 –Aluminium was at 197.05 rupees, down 1% 

 –Copper was at 646.15 rupees a kg, down 0.8% 

 –LEAD was at 178.25 rupees a kg, up 0.4%

 –Zinc was at 279.55 rupees a kg, down 0.8%


* Outlook for the evening session on MCX:

 –Aluminium contract seen at 194.20-202.0 rupees a kg

 –Copper seen at 643.0-660.0 rupees a kg

 –Lead seen at 175.70-180.20 rupees a kg

 –Zinc seen at 277.40–284.60 rupees a kg




US$1 = 79.77 rupees

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


Edited by Vidhi Verma


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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Source: Cogencis

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