Informist, Thursday, Jan 12, 2023
By Chinmay Mungse
MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and COMEX fell today due to a selloff after the contracts surged on Wednesday.
* Authorities in China urged for stimulus to boost economic activity, especially the cash-strapped real estate sector, and this improved demand prospects for base metals in the world’s largest consumer on Wednesday.
* Expectations of a surge in demand led the COPPER contract on the LME to jump to a seven-month high of $9,518 per tn. On the domestic bourse, copper contracts surged to a seven-month high of 771.05 rupees per tn on Wednesday.
* ALUMINIUM contracts on the MCX rose to a five-week high of 214.55 rupees per tn on Wednesday, tracking gains on LME.
* “Base metals trade lower, taking a pause after sharp gains on Wednesday on hopes of improved demand outlook as China eased restrictions,” Kotak Securities said in a report.
* Slightly higher inflation in China also dented the demand for base metals. China’s consumer price inflation rose 1.8% on year in December, up from 1.6% in November, while producer price inflation fell 0.7%, despite COVID disruptions.
* At 1648 IST, on the MCX, the January futures contract of:
–Aluminium was at 212.25 rupees a kg, down 0.6%
–Copper was at 764.9 rupees a kg, down 0.6%
–LEAD was at 188.7 rupees a kg, down 0.2%
–ZINC was at 279.5 rupees a kg, down 0.5%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 210.50-214.80 rupees a kg
–Copper seen at 760.0-768.0 rupees a kg
–Lead seen at 187.50-191.0 rupees a kg
–Zinc seen at 277.50–281.50 rupees a kg
End
US$1 = 81.56 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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