Informist, Tuesday, Jan 31, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India today and the London Metal Exchange due to a rebound in the dollar and increased risk aversion ahead of the US Federal Reserve’s monetary policy decision earlier Thursday. Market participants locked profits after the recent run-up in prices, stayed on the sidelines and avoided taking major fresh positions.
* The dollar index rose 0.2% to 102.48 against a basket of major currencies on safe-haven demand. A firm greenback makes dollar-denominated commodities expensive for holders of other currencies.
* The Eurozone GDP slightly rose by 0.1% in Oct-Dec quarter from 0.3% in Jul-Sep quarter, according to preliminary data from Eurostat. The Bloc managed to avoid recession, but the economy remains sluggish and puts downward pressure on non-ferrous metals.
* However, the downside in base metals was restricted by a fall in stocks at LME-accredited warehouses and better-than-expected economic data from China, the top consumer of the commodity. China’s manufacturing Purchasing Managers’ Index rose to 50.1 in January from 47 in December.
* ALUMINIUM prices fell due to concerns about Russian metal flowing into the LME warehouses. Trading giant, Glencore delivered 40,000 tn of the Russian metal into the exchange warehouses based in South Korea.
* COPPER contracts slipped due to firm dollar and profit-taking by traders on the domestic bourse.
* At 1655 IST, on the MCX, the February futures contract of:
–Aluminium was at 222.0 rupees a kg, down 0.4%
–Copper was at 776.45 rupees a kg, down 0.7%
–LEAD was at 185.75 rupees a kg, down 0.5%
–ZINC was at 295.75 rupees a kg, down 1.1%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 218.0-226.0 rupees a kg
–Copper seen at 760.0-792.0 rupees a kg
–Lead seen at 182.0-190.0 rupees a kg
–Zinc seen at 292.0–300.0 rupees a kg
End
US$1 = 81.92 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Maheswaran Parameswaran
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