Informist, Wednesday, Feb 1, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and the London Metal Exchange traded in a thin range with a positive bias as investors remain cautious ahead of the US Federal Reserve’s rate decision at 0030 IST on Thursday.
* Market participants are awaiting the outcome of the Federal Open Market Committee’s meeting for clarity on the Fed’s stance. The US central bank is expected to raise interest rates by 25 basis points. They will also take cues from US ISM manufacturing purchasing managers’ index and job openings and labour turnover survey later today.
* “LME base metals swung between gains and losses amid sluggish demand from China following New Year holidays and doubts over the pace of economic recovery in the mainland nation,” Kotak Securities said in a note.
* The Caixin China General Manufacturing PMI came in at 49.2 in January, according to data released by S&P Global today. The data showed that manufacturing activity shrank for the sixth straight month, as rising COVID-19 cases disrupted supply, demand and the ability of employees to work.
* ALUMINIUM prices rose following reports of power shortages in Yunnan province, which may force smelters to cut production. Prices were also supported by a fall in stocks by 3,175 tn at LME-approved warehouses.
* COPPER contracts traded slightly lower as refined copper production rose 3.6% on year to 961,000 tn in December.
* ZINC prices rose as traders increased their long positions on the MCX, and LME inventory fell by 775 tn.
* At 1830 IST, on the MCX, the February futures contract of:
–Aluminium was at 226.6 rupees a kg, up 0.3%
–Copper was at 786.9 rupees a kg, down 0.1%
–LEAD was at 187.35 rupees a kg, up 0.2%
–Zinc was at 297.0 rupees a kg, up 0.3%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 223.30-229.0 rupees a kg
–Copper seen at 778.0-791.0 rupees a kg
–Lead seen at 183.25-191.50 rupees a kg
–Zinc seen at 293.0–299.0 rupees a kg
US$1 = 81.92 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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