Informist, Wednesday, Feb 7, 2024
By Sandeep Sinha
MUMBAI – Prices of COPPER fell today on the Multi Commodity Exchange of India, tracking weak cues from the London Metal Exchange amid a weak demand prospect and rising output. The sentiment was further dented by traders liquidating their long positions on the LME and increasing their short positions on the domestic exchange.
Copper output in the second-largest producer, Peru, rose 12.7% on year to a record high of 2.76 mln tn in 2023. Fewer disruptions at MMG’s Las Bambas mine and additional production from Anglo-American’s Quellaveco mine led to growth in red metal production.
The risk aversion and very little physical trading activity ahead of the Chinese Lunar New Year holiday also weighed on base metals’ sentiment. The initial optimism about support measures introduced by top consumer China to stem the rout in equity failed to lift the market mood.
The red metal is one of the leading barometers of global economic health as it is used in many sectors. Investors look forward to Federal Open Market Committee member Thomas Barkin and Federal Reserve Bank of Boston President Susan Collins’ speech later today for further cues.
However, weakness in the dollar index limited further downside in base metal prices. A weaker dollar makes commodities priced in the greenback cheaper for holders of other currencies. The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 104.08.
ALUMINIUM prices fell as traders raised their short positions on the domestic exchange. A rise of 1,300 tn in stocks at LME-approved warehouses also hit prices.
LEAD contracts were lower, taking weak cues from LME due to a rise in stocks by 4,750 tn on LME-registered warehouses.
At 1712 IST, on the MCX, the February futures contract of:
–Aluminium was at 200.5 rupees a kg, down 1.1%
–Copper was at 715.80 rupees a kg, down 0.2%
–Lead was at 179.75 rupees a kg, down 0.4%
–ZINC was at 215.50 rupees a kg, down 0.9%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 198.40-204.0 rupees
–Copper seen at 712.0-722.80 rupees
–Lead seen at 179.10-182.0 rupees
–Zinc seen at 213.30-220.0 rupees
End
US$1 = 82.97 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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