Informist, Thursday, Dec 7, 2023
By J Navya Sruthi
MUMBAI – COPPER futures were in the green on the Multi Commodity Exchange of India today tracking COMEX due to an increase in imports in November by China, the world’s largest consumer, analysts said.
China’s copper imports in November rose 10.1% on month to 550,565.6 tn, the highest in almost two years, according to the data released by the General Administration of Customs.
Also, a weaker dollar aided sentiment for the metal. A weaker greenback makes dollar-denominated commodities cheaper for those holding other currencies. The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.2% at 103.97.
ALUMINIUM prices fell today on MCX, tracking LME as China’s exports in Jan-Nov declined compared to the corresponding period a year ago.
On a year-to-date basis, exports of unwrought aluminium and aluminium products declined 15.3% on year to 5.2 mln tn over the first eleven months of the year, according to a report by ING Economics. This dented sentiments for the metal today.
The latest LME data shows that cancelled warrants for ZINC rose by 18,800 tn for a second consecutive session to 57,175 tn as of Wednesday, the highest since Sep 6, further weighing on prices.
Investors now await the US unemployment claims data due later today, and non-farm payrolls data on Friday. If the data indicates that the economy is under stress, it may prompt the US Federal Reserve not to raise interest rates further, fuelling further speculation about rate cuts in 2024.
At 1840 IST, on the MCX, the December futures contract of:
–Aluminium was at 195.4 rupees a kg, down 0.5%
–Copper was at 711.5 rupees a kg, up 0.4%
–LEAD was at 182.23 rupees a kg, down 0.1%
–Zinc was at 218.4 rupees a kg, down 0.2%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 195-199.50 rupees
–Copper seen at 702.00-716.00 rupees
–Lead seen at 179.50-185.00 rupees
–Zinc seen at 215.50-222.50 rupees
US$1 = 83.35 rupees
Edited by Aditya Sakorkar
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