Informist, Monday, Nov 8, 2021
By Sharathkumar Nair
MUMBAI – Futures contracts of base metals are likely to trade higher on the Multi Commodity Exchange of India and London Metal Exchange this week, analysts said.
* Increased coal production has eased power shortage concerns in China. The National Development and Reform Commission, China’s top economy planner said today that daily coal production in China reached 11.93 mln tn, its highest level in recent years.
* Industrial activity is likely to pick up pace as power crunch eases, and subsequently improve demand for base metals and increase prices, analysts said.
* Improved economic data from the US and China, the top two biggest consumers of base metals is likely to help base metals prices rise.
* In October, the US economy created 531,000 jobs, according to data from the Labor Department, which also revised the September data to show 312,000 job gains from previously reported 194,000. Market participants had expected a rise of 450,000 jobs last month.
* The unemployment rate fell to 4.6% from 4.8% in September. Pick-up in economic and social activities is expected to increase consumption of base metals in the US.
* China’s exports grew 27.1% to $300.2 bln in October as compared with a year ago, data from the General Administration of Customs showed.
* Investors will eye the US inflation data this week, with the October producer price index due on Tuesday and the consumer price index for last month on Wednesday for further.
* COPPER contracts are likely to trade higher as demand for the red metal is likely to improve as economic activity in the US and China picks pace.
* However, the ongoing debt crisis in China is likely to limit a sharp increase in prices as China’s realty sector is one of the biggest consumers of base metals such as ALUMINIUM and copper.
* Following are the prices of three-month futures contracts of base metals on LME in dollars per tn, the change in percentage terms, and the weekly support and resistance levels:
METAL
PRICE
CHANGE
SUPPORT
RESISTANCE
Aluminium
2,554.3flat2,524.32,584.3
Copper
9,5320.49,5029,562
Lead
2,3590.52,3292,389
Nickel
19,422.51.519,392.519,452.5
Zinc
3,220(-)0.63,1903,250
* Following are the prices of the most active contracts of base metals on MCX, in rupees per kg, percentage change from the previous close, and the expected weekly support and resistance levels:
METAL
PRICE
CHANGE
SUPPORT
RESISTANCE
Nov aluminium
204.5(-) 0.1173.8233.8
Nov copper
735.50.5730763
Nov lead
186.5flat156.5216.5
Nov nickel
1,504.81.11,4711,531
Nov zinc
274.20.4244304
End
US$1 = 74.01 rupees
Edited by Maheswaran Parameswaran
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