Informist, Tuesday, Jul 26, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals gained on the Multi Commodity Exchange of India and the London Metal Exchange due to a decline in inventories and supply tightness in the physical market.
* The LME stocks of ALUMINIUM fell by 3,925 tn to 304,125 tn; COPPER fell by 1,150 tn to 132,025 tn; ZINC fell by 275 tn to 72,250 tn and NICKEL fell by 786 tn to 59,382 tn. The only exception were LEAD stocks, which increased by 100 tn to 39,150.
* “Commodities in international market traded largely higher, supported by a choppy US dollar, renewed supply worries and some stability in Chinese equities, which offset concerns about growth, Kotak Securities said in a note.
* The International Copper Study Group data showed global refined copper surplus narrowed to 44,000 tn in May from 95,000 tn in April.
* Meanwhile, top executives of copper mining firms were surprised by the sudden fall in the metal’s price despite firm demand and supply tightness. The current prices are not unattractive to make fresh investment in developing new mines, one executive said.
* Market participants await the outcome of the Federal Open Market Committee’s meeting on Wednesday to get clarity about the central bank’s future stance. The US central bank is expected to raise interest rates by 75 basis points to control inflation.
* Aluminium prices rose due to short-covering of positions by traders on the domestic bourse.
* Zinc contracts rose as traders rolled over their long positions on the MCX due to a fall in LME stocks.
* At 1705 IST, on the MCX, the July futures contract of:
–Aluminium was at 209.0 rupees, up 1%
–Copper was at 638.60 rupees a kg, up 1.7%
–Lead was at 177.90 rupees a kg, up 0.4%
–Zinc was at 282.0 rupees a kg, up 1.7%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 207.0-214.0 rupees a kg
–Copper seen at 632.0-643.0 rupees a kg
–Lead seen at 176.30-180.0 rupees a kg
–Zinc seen at 275.0–285.0 rupees a kg
End
US$1 = 79.78 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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