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India Base Metals: Mixed on MCX ahead of US non-farm payrolls data

Informist, Friday, Oct 7, 2022

 

By Sandeep Sinha

 

MUMBAI – Most base metals futures traded mixed on the Multi Commodity Exchange of India, despite weak cues from London Metal Exchange today as investors await the US non-farm payrolls report later today.

 

* “Holding any sort of risk in non-ferrous metals has become a bit of a lottery with the macro uncertainty and price patterns leaving many on the sidelines and therefore the high-frequency programs dominate,” Al Munro at broker Marex said in a note.

 

* The sentiment was further dented by US Federal Reserve members maintaining a hawkish stance stating that bringing inflation under control remains a key priority.

 

* Trading in base metals has been subdued as the Chinese market is shut for the National Day/Golden Week Holiday and will open on Monday. The country is the biggest producer and consumer of base metals.

 

COPPER fell on fears of global slowdown and a sharp jump in LME inventory by 3,575 tn. The price on LME has slipped below the 8-day moving average at $7,543 per tn.

 

* “Commodities may trade sideways to lower as global risk appetite is likely to be limited today ahead of US labour report”, Kotak Securities said in a report.

 

* However, the downside was capped in non-ferrous metals due to weakness in the dollar index against a basket of major currencies. A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.

 

ALUMINIUM prices rose on a decline in LME stocks by 1,225 tn and market players raised fresh long positions on the MCX.

 

ZINC contract slipped on profit-booking and traders increasing fresh short positions on the domestic bourse. 

 

* At 1809 IST, on the MCX, the October futures contract of:

 –Aluminium was at 206.95 rupees a kg, up 0.3% 

 –Copper was at 653.95 rupees a kg, down 0.4% 

 –LEAD was at 182.40 rupees a kg, up 0.3%

 –Zinc was at 280.20 rupees a kg, down 0.8%

 

* Outlook for the evening session on the MCX:

 –Aluminium contract seen at 204.0-210.0 rupees a kg

 –Copper seen at 649.0-662.0 rupees a kg

 –Lead seen at 180.0-184.0 rupees a kg

 –Zinc seen at 277.0–285.0 rupees a kg

 

End

US$1 = 82.32 rupees

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

 

Edited by Maheswaran Parameswaran

 

 

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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