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India Base Metals: Most up as dollar steady; Fed minutes in focus

Informist, Wednesday, Oct 11, 2023

 

By Sandeep Sinha and Ishan Rathi

 

MUMBAI – Futures contracts of all the base metals today traded in a tight range with a positive bias on the London Metal Exchange and Multi Commodity Exchange of India as the dollar was steady and ahead of the minutes of the US Federal Reserve’s meeting held in September that to be released later in the day. The positive mood in the market was lifted by a Bloomberg report of a fresh stimulus from China to boost infrastructure spending.

 

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was flat at 105.82.

 

However, the upside in the base metals was restricted due to concerns related to China’s property sector.

 

Investors are also waiting for the release of the US core producer price index and a speech from Federal Reserve Governor Christopher Waller for cues on further policy action. Investors will also watch out for US consumer price index data to be released on Thursday.

 

ALUMINIUM prices were steady as expectation of a fresh stimulus from China was offset by selling from commodity trading advisers.

 

COPPER prices rose due to buying by commodity trading advisers. The positive cue was also aided by an increase in China’s Yangshan premium to $70 per tn, the highest in a year.

 

Yangshan premium is the premium paid on top of the London Metal Exchange price for refined copper to be custom cleared and imported into China through Yangshan bonded area in Shanghai.

 

However, rising stocks at LME-registered warehouses capped further upside in the red metal.

 

LEAD contracts traded higher because of short-covering of positions by traders on the MCX.

 

ZINC contracts traded lower as traders increased their short positions on the domestic bourse.

 

* At 1800 IST, on the MCX, the October futures contract of:

–Aluminium was at 204.30 rupees a kg, unchanged

–Copper was at 705.70 rupees a kg, up 0.1%

–Lead was at 186.60 rupees a kg, up 0.2%

–Zinc was at 221.30 rupees a kg, down 0.1%

 

* Outlook for the evening session on the MCX:

–Aluminium contract seen at 202.0-207.50 rupees

–Copper seen at 700.0-714.0 rupees

–Lead seen at 185.0-190.0 rupees

–Zinc seen at 219.0–225.0 rupees

End

 

US$1 = 83.19 rupees

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

 

Edited by Ashish Shirke

 

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.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to [email protected]

 

© Informist Media Pvt. Ltd. 2023. All rights reserved.

Source: Cogencis

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