Informist, Tuesday, Dec 14, 2021
By Sharathkumar Nair
MUMBAI – The contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange declined, as investors remained cautious ahead of the US Federal Open Market Committee’s two-day policy meeting starting later today, said analysts.
* Market participants expect the US Federal Reserve to accelerate the tapering of its bond-buying programme by months amid rising inflation in the US, said Geojit Financial Services Ltd in a report.
* An early tapering by the Fed will curb excess liquidity in financial markets and slow down economic recovery in the US, one of the top consumers of base metals in the world.
* The ongoing debt crisis among Chinese property development companies weighed on base metal prices. The slowdown in the construction sector forced the demand for base metals from China to fall, the world’s top producer and consumer of base metals in the world.
* Rising cases of Omicron, the new COVID-19 variant, also dampened the demand for base metals as countries impose lockdowns to control the spread of the virus, said analysts,
* COPPER prices rose on tightness in the supply of the red metal. A Peruvian community rejected any talks with officials at MMG’s Las Bambas copper mine and continued to block the roads leading from the mine, disrupting the supply of the copper to global markets. Peru is the second-largest producer of copper in the world.
* ZINC prices declined on low demand. In China, various infrastructure construction projects were postponed until next year, causing the prices to fall, said Shanghai Metals Market in a report.
* At 1800 IST, on the MCX, the December futures contract of
—ALUMINIUM was at 216 rupees a kg, down 0.3%
–Copper was at 733.7 rupees a kg, up 0.3%
—LEAD was at 185.4 rupees a kg, up 0.1%
—Nickel was at 1,544.5 rupees a kg, down 0.3%
–Zinc was at 278 rupees a kg, down 0.3%
* Outlook for the evening session on MCX:
–Aluminium contract seen 186.2-246 rupees per kg
–Copper contract seen 700-763 rupees per kg
–Lead contract seen 155-205 rupees per kg
–Nickel contract seen 1,514-1,577 rupees per kg
–Zinc contract seen 225–341 rupees per kg
End
US$1 = 75.86 rupees
Edited by Pranav S. Joshi
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