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Monday, November 28, 2022

India Base Metals:All down on weak German econ data, weakness in yuan

Informist, Tuesday, Oct 25, 2022

 

By Sandeep Sinha

 

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange due to weak economic data and continued weakness in the yuan against the dollar.

 

* German Ifo business climate index fell for the fifth straight month and came in at 84.3 in October. The weak reading suggests that the economic sentiment remains weak in Europe’s largest economy.

 

* Chinese yuan slipped to the lowest level in 14 years against the dollar, after Chinese President Xi Jinping was elected for a third term.

A weak yuan makes commodities priced in dollar expensive for the world’s biggest consumer.

 

* His re-election may result in continued restrictive policies in the world’s top consumer and will weigh on metal prices.

 

* However, the decline in LME stocks may limit the downside in non-ferrous metals.

 

ALUMINIUM prices fell as traders rolled over their short positions in the domestic bourse. The price has been trading below the key averages on the daily chart and the momentum indicator Relative Strength Index was at 41.23, suggesting weakness in the price.

 

COPPER contract slipped due to recovery in the dollar amid expectation of a steeper rate hike. However, the fall in LME stocks cushioned the downside in prices.

 

* At 1712 IST, on the MCX, the October futures contract of:

 –Aluminium was at 192.20 rupees a kg, down 1.1% 

 –Copper was at 641.65 rupees a kg, down 1.3% 

 –LEAD was at 177.20 rupees a kg, down 0.3%

 –ZINC was at 265.85 rupees a kg, down 2.5%

 

* Outlook for the evening session on the MCX:

 –Aluminium contract seen at 190.0-198.0 rupees a kg

 –Copper seen at 640.0-651.0 rupees a kg

 –Lead seen at 175.0-182.0 rupees a kg

 –Zinc seen at 264.0–272.0 rupees a kg

 

End

US$1 = 82.72 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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© Informist Media Pvt. Ltd. 2022. All rights reserved.

 

Source: Cogencis

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