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India Base Metals: Most up on weakness in dollar, fall in inventory

Informist, Tuesday, Dec 6, 2022

 

By Sandeep Sinha

 

MUMBAI – Most base metals futures rose on the Multi Commodity Exchange of India and the London Metal Exchange today due to a weak dollar and a fall in inventory. The expectation of demand revival in top consumer China after it eased COVID-19 testing and requirements, boosted the sentiment.

 

* The dollar index, which measures the strength in the greenback against a basket of major currencies, fell 0.2% to 105.12 due to reduced safe-haven demand. A weaker greenback makes dollar-denominated commodities cheaper for foreign currency holders.

 

* Stocks of aluminium at LME accredited warehouses fell by 3,800 tn to 491,750 tn, while those of copper were down by 350 tn to 86,375 tn. Zinc stocks dropped by 775 tn to 38,975 tn. While nickel stocks jumped 1,038 tn to 54,240 tn, those of lead remained unchanged at 23,750 tn.

 

* “Commodities may continue to waver today as markets look forward to China’s politburo meeting and more economic data from the US ahead of the Federal Open Market Committee meeting next week,” Kotak Securities said in a note.

 

COPPER prices rose as traders increased their long positions on the domestic bourse.

 

* ZINC contract gained on an expectation of improved demand from steel companies in China. Market participants raising their long positions on the MCX also lifted the prices.

 

* At 1830 IST, on the MCX, the December futures contract of:

 –ALUMINIUM was at 214.45 rupees a kg, unchanged at 0.0% 

 –Copper was at 698.60 rupees a kg, up 0.7% 

 –LEAD was at 186.20 rupees a kg, down 0.2% 

 –Zinc was at 280.0 rupees a kg, up 2%

 

* Outlook for the evening session on the MCX:

 –Aluminium contract seen at 211.0-219.0 rupees a kg

 –Copper seen at 693.0-710.0 rupees a kg

 –Lead seen at 183.0-191.0 rupees a kg

 –Zinc seen at 273.0–280.0 rupees a kg

 

End

US$1 = 82.61 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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