Informist, Friday, Sep 24, 2021
By Sharathkumar Nair
MUMBAI – Futures contracts of most base metals fell today on the Multi Commodity Exchange of India taking cues from the parent contracts on the London Metal Exchange, analysts said.
* On LME, the contracts fell after Chinese property company, Evergrande missed Thursday’s deadline on interest payments to its offshore bondholders. This weakened market sentiment as investors fear a possible collapse as the company might not be able to manage its $305-bln debt.
* People’s Bank of China injected 70 bln yuan today to boost market confidence and to avoid any liquidity crunch in the markets. China’s central bank has injected money for four straight sessions before Friday to ease market worries over the Evergrande crisis.
* China’s real-estate sector is the major consumer of base metals such as ALUMINIUM and COPPER. The demand for base metals from China will slow down if Evergrande fails, which weighed down on aluminium and copper prices, analysts said.
* China’s real-estate sector is the major consumer of base metals such as ALUMINIUM and COPPER. If Evergrande fails the demand for base metals from China will slow down, and this weighed down aluminium and copper prices, analysts said.
* NICKEL prices were down as the global nickel market deficit declined to 24,700 tn in July from 32,400 in June, the International Nickel Study Group said.
* ZINC prices were up after Nrystar, one of Europe’s main zinc smelters reduced production due to a rise in electricity costs in the region.
* At 1730 IST, on the MCX, the September futures contract of
–Aluminium was at 232 rupees a kg, down 1.63%
–Copper was at 711.30 rupees a kg, down 0.2%
—LEAD was at 191 rupees a kg, down 0.24%
–Nickel was at 1,480 rupees a kg, down 0.11%
–Zinc was at 267 rupees a kg, up 0.26%
* Outlook for the evening session on MCX:
–Aluminium contract seen 230-238 rupees per kg
–Copper contract seen 681-736 rupees per kg
–Lead contract seen 168-202 rupees per kg
–Nickel contract seen 1,426-2,112 rupees per kg
–Zinc contract seen 252-293 rupees per kg
End
US$1 = 73.69 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Michael Correya
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