Informist, Monday, Jul 17, 2023
By Sandeep Sinha
Related Post
MUMBAI – Futures contracts of all base metals fell today on the Multi Commodity Exchange of India and the London Metal Exchange because of weak economic data from top consumer China and profit booking after a rally in the past few sessions.
According to data from the National Bureau of Statistics released today, China’s Apr-Jun GDP rose 6.3% on year, lower than analysts’ estimates of a 7.1% increase. “The weaker than expected GDP numbers are likely to continue to cause concern for markets,” said Warren Patterson, head of commodities strategy at ING Economics.
“We believe this week there are some clues that could impact the base metal pack directly or indirectly, such as the US industrial production and retail sales numbers and the Eurozone and UK’s inflation numbers, which are expected to be released at mid-week. Additionally, weak Chinese macro data is increasing the pressure on policymakers to provide additional stimulus to support economic growth,” said Saumil Gandhi, senior analyst-commodities at HDFC Securities.
However, the downside in non-ferrous metals was limited by persistent weakness in the dollar, which makes dollar-denominated commodities such as non-ferrous metals cheaper for holders of other currencies.
The dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.1% at 99.85.
Market participants will take further cues from the US Empire State manufacturing index, to be released later today.
ALUMINIUM prices fell as traders trimmed their long positions on the domestic exchange.
COPPER prices underperformed other base metals because of concerns about demand and the rise in stocks at LME and Shanghai Futures Exchange-registered warehouses.
LEAD contracts slipped due to a rise in stocks by 1,025 tn at the LME-registered warehouses and profit booking by market players on the MCX.
ZINC contracts fell tracking weakness in the steel prices on poor Chinese GDP and property investment data. The metal is used for galvanisation.
* At 1635 IST, on the MCX, the July futures contract of:
–Aluminium was at 199.05 rupees a kg, down 1.2%
–Copper was at 726.20 rupees a kg, down 1.9%
–Lead was at 182.30 rupees a kg, down 0.2%
–Zinc was at 214.80 rupees a kg, down 1.3%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 196.70-202.50 rupees
–Copper seen at 720.0-732.0 rupees
–Lead seen at 180.0-184.70 rupees
–Zinc seen at 210.0–220.0 rupees
End
US$1 = 82.04 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
