India Base Metals: Copper prices down on rise in stocks, firm dollar

Informist, Friday, Jul 21, 2023

By Sandeep Sinha

MUMBAI – Prices of COPPER fell on the Multi Commodity Exchange of India, tracking weak cues from the London Metal Exchange because of a rise in inventory at LME-accredited warehouses, a firm dollar, and weak economic data from the US.

Copper inventories in LME-registered warehouses have risen over 10% to 59,900 tn, from the low of 54,225 tn touched on Jul 13.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 101.06. A firm greenback makes dollar-denominated commodities, such as copper, expensive for holders of other currencies.

US existing-home sales fell 3.3% on month and 18.9% on year in June to 4.16 mln units, according to the data released by the National Association of Realtors on Thursday.

For further cues, market players await China’s National Development and Reform Commission press conference on Monday and the Politburo meeting next week to get further clarity on economic stimulus.

ALUMINIUM prices turned flat after a gap-up opening due to a lack of fresh triggers.

LEAD contracts traded higher on firm demand in the physical market. However, the upside was limited due to a rise in inventory by 950 tn at LME-registered warehouses.

ZINC contracts fell due to weak demand from the steel sector, as the metal is used for galvanisation.

* At 1645 IST, on the MCX, the July futures contract of:

–Aluminium was at 196.10 rupees a kg, unchanged

–Copper was at 728.40 rupees a kg, down 0.3%

–Lead was at 182.70 rupees a kg, up 0.3%

–Zinc was at 212.90 rupees a kg, down 0.1%

* Outlook for the evening session on the MCX:

–Aluminium contract seen at 192.0-199.0 rupees

–Copper seen at 720.0-734.10 rupees

–Lead seen at 180.0-184.50 rupees

–Zinc seen at 210.0–216.0 rupees

End

US$1 = 81.95 rupees

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

Edited by Manisha Baxla

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