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Monday, December 5, 2022

India Base Metals: Down on weak China econ data, firm dollar

Informist, Monday, Oct 31, 2022


By Sandeep Sinha


MUMBAI – Futures contracts of all the base metals fell today on the Multi Commodity Exchange of India and the London Metal Exchange due to weak economic data from China and strength in the dollar.


* China’s manufacturing Purchasing Managers’ Index fell to 49.2 in October from 50.1 in September, according to the country’s National Bureau of Statistics.


* A reading below 50 indicates contraction in the economic activity and number above signals expansion.


* Slowdown in new orders also suggests activity is likely to remain subdued in the coming months.


* The dollar index rose 0.4% to 111.19 in anticipation of a steep rate hike by the US Federal Reserve. A firm greenback makes dollar-denominated commodities expensive for holders of other currencies.


COPPER prices fell on concerns about demand due to weak economic data from China and aggressive tightening by major central banks. The sentiment was further dented by rising COVID-19 cases in China, which may hurt economic activity in the country, as it enforces zero-tolerance policy.


* However, the fall was capped by a decline in inventory at LME-accredited warehouses. 


ALUMINIUM contracts fell as traders increased their short positions on the domestic bourse. Slowdown in demand from the automobile sector also hurt prices of the metal.


ZINC prices fell to a fresh 52-week low on LME due to liquidation of long positions in Chinese steel, as the metal is used for galvanisation.


* At 1759 IST, on the MCX, the November futures contract of:

 –Aluminium was at 195.70 rupees a kg, down 0.4% 

 –Copper was at 646.20 rupees a kg, down 0.9% 

 –LEAD was at 179.05 rupees a kg, down 0.9%

 –Zinc was at 253.25 rupees a kg, down 3.1%


* Outlook for the evening session on the MCX:

 –Aluminium contract seen at 191.50-199.0 rupees a kg

 –Copper seen at 638.0-654.0 rupees a kg

 –Lead seen at 176.0-182.50 rupees a kg

 –Zinc seen at 250.50–257.0 rupees a kg



US$1 = 82.78 rupees

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


Edited by Ashish Shirke


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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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