Informist, Tuesday, Oct 31, 2023
By Ishan Rathi
MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange fell today because of weak economic data from top consumer China.
Data by China’s National Bureau of Statistics showed the country’s official manufacturing purchasing managers’ index fell to 49.2 in October from 50.2 in September. A reading below 50 indicates contraction in economic activity and a reading above 50 indicates expansion.
However, a sharp downside in non-ferrous metals was limited due to a weakness in the dollar index. A weaker greenback makes dollar-denominated commodities such as base metals cheaper for buyers of other currencies, thus increasing their demand.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 106.03.
“Base metals eased as China’s factory activity fell back into contraction in October, while an expansion of the services sector unexpectedly eased, signalling that the economy remains fragile and is in need of support,” said Kotak Securities said in a report.
“China accounts for more than half of the global consumption of most base metals, which are used widely in the manufacturing sector,” said Motilal Oswal in their reports.
Market participants remained cautious ahead of the outcome of the US Federal Reserve’s two-day meeting that will begin today.
ALUMINIUM prices were steady due to lack of fresh triggers.
COPPER prices fell due to weak economic data from China. However, the downside was restricted due to a fall in stocks by 1,925 tn at LME-accredited warehouses.
LEAD contracts traded lower because of a rise in stocks by 1,075 tn at LME-registered warehouses.
ZINC contracts underperformed other non-ferrous metals on the downside due to concern about demand in China.
* At 1800 IST, on the MCX, the November contract of:
–Aluminium was at 207.05 rupees a kg, unchanged
–Copper was at 708.55 rupees a kg, down 0.1%
–Lead was at 185.85 rupees a kg, down 0.2%
–Zinc was at 220.35 rupees a kg, down 0.5%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 204.20-209.50 rupees
–Copper seen at 701.00-715.00 rupees
–Lead seen at 183.00-187.50 rupees
–Zinc seen at 217.50-223.0 rupees
End
US$1 = 83.25 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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
