Informist, Tuesday, Jul 18, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of most base metals fell today on the Multi Commodity Exchange of India and the London Metal Exchange as disappointing Chinese economic data weighed on market sentiment.
Chinese property investment fell 7.9% on year in the first six months of 2023, higher than the decline of 7.2% in Jan-May, which led to a wave of selling across the sector.
However, the downside in base metals was cushioned by better-than-expected economic data from the US and continued weakness in the dollar. The Empire State Manufacturing Survey’s general business condition index fell to 1.1 from 6.6 in June but was better than the expectation of (-)3.5.
The dollar index, which measures the strength in the greenback against a basket of six major currencies, was down 0.2% at 99.72, the lowest level since April 2022. A weaker greenback makes dollar-denominated commodities such as non-ferrous metals cheaper for holders of other currencies.
ALUMINIUM prices fell because of rising production in China and weak demand.
COPPER prices slipped due to concerns about demand and a rise in stocks by 25 tn at LME-accredited warehouses.
LEAD contracts gained due to short-covering of positions by traders on the domestic bourse.
ZINC contracts traded lower as the global zinc surplus widened to 267,000 tn in the first five months of 2023 from a surplus of 138,000 tn in the first four months, according to International Lead and Zinc Study Group data.
* At 1605 IST, on the MCX, the July futures contract of:
–Aluminium was at 198.25 rupees a kg, down 0.7%
–Copper was at 723.40 rupees a kg, down 0.4%
–Lead was at 182.50 rupees a kg, up 0.1%
–Zinc was at 213.30 rupees a kg, down 0.7%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 196.0-202.0 rupees
–Copper seen at 717.0-727.0 rupees
–Lead seen at 181.0-183.50 rupees
–Zinc seen at 210.0–219.0 rupees
End
US$1 = 82.03 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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