India Base Metals:Up on strong China econ data; copper tops $6,000/tn

0
6

Tuesday, Jun 30

 

By Rituparna Ghosh

 

Article continues below Advertisement...

NEW DELHI – Following are key highlights of trading in base markets today:

 

At 1650 IST, on MCX, the June futures contract of:

–aluminium was at 138.0 rupees a kg, up 0.5%

–copper at 463.8 rupees a kg, up 0.9%

–lead at 145.3 rupees a kg, up 0.2%

–nickel at 979.4 rupees a kg, up 0.3%

–zinc at 165.5 rupees a kg, up 0.2%

* Base metal contracts on Multi Commodity Exchange of rose today, tracking contracts on as ’s manufacturing activity expanded in June, analysts said. 

 

* In June, the official manufacturing purchasing manager’s index was at 50.9, according to the National Bureau of Statistics. A 44.3% month-on-month rise in pending home sales in the US in May also supported metal prices.

 

* Copper prices were above the psychologically crucial $6,000-per-tn-mark today, marking its biggest quarterly gain in 10 years. Rise in China’s manufacturing activity and lower supply from Chile supported the red metal as supply from the South American country remains suspended for two weeks. 

 

 “If copper is able to lastingly exceed this threshold, follow-up buying could ensue, pushing the copper price up even further in the short term. This could also lure in speculative financial investors wishing to jump on the bandwagon. Though they had long been reluctant to buy into copper, they nearly doubled their net long positions to a good 20,000 contracts last week.”

   – Commerzbank AG, in a note. 

 

* A broad-based strength in the US over the rising number of COVID-19 cases globally, however, limited the rise in metal prices. 

  

* Rise in nickel prices were also capped as China’s exports of stainless steel fell 19% on month and 21% on year to 253,000 tn, as the virus impacted overseas demand. Nickel is a key component used in stainless steel. 

 

* Market participants await China’s caixin manufacturing purchasing manager’s index for June on Wednesday. The survey covers smaller and private Chinese companies. 

 

* Outlook for the evening session on MCX: 

  –Jul copper contract – 449-471 rupees per kg.

  –Jul nickel contract – 960-1,010 rupees per kg

  –Jul zinc contract – 160-175 rupees per kg

  –Jul aluminium contract – 125-145 rupees per kg

  –Jul lead contract – 130-150 rupees per kg

 

End

 

US$1 = 75.50 rupees

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

 

Edited by Nidhi Chugh

 

Cogencis Tel +91 (11) 4220-1000

Send comments to feedback@cogencis.com

Source: Cogencis

LEAVE A REPLY

Please enter your comment!
Please enter your name here