Informist, Thursday, Jan 27, 2022
By Sandeep Sinha
MUMBAI – Contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange rose today as investors digested the hawkish remarks of Federal Reserve Chairman Jerome Powell, who called for a rate hike in March.
* The US central bank left the federal funds rate target range unchanged at 0.00-0.25%, in line with market expectations. At the same time, it suggested that it was prepared to hike key rates soon to support growth amid rampant price rise in the world’s largest economy.
* However, the strengthening dollar made dollar-denominated industrial metals more expensive for other currency holders.
* ALUMINIUM prices rose due to concerns over supply from Russia, a major producer, amid rising tensions with Ukraine, and a decline in exchange stockpiles. “Market participants have been focusing on Russia and the potential scenario in which sanctions are imposed on the country amid the Ukraine conflict which could lead to export outages,” said Commerzbank AG in a report.
* COPPER prices gained as traders rolled over their long positions on domestic bourse. The sentiment was also supported by optimism over demand from China, the top consumer, and a decline in LME inventory.
* NICKEL contracts rose due to demand from electric vehicle battery makers and short-covering by market players. The International Nickel Study Group data showed a deficit of 162,000 tn for the first 11 months of 2021 against a surplus of 92,500 tn in the same period of the previous year.
* At 1730 IST, on the MCX, the January futures contract of
–Aluminium was at 247.25 rupees a kg, up 1%
–Copper was at 753.25 rupees a kg, up 0.6%
–LEAD was at 187.40 rupees a kg, up 0.5%
–Nickel was at 1,746 rupees a kg, up 1.7%
–ZINC was at 299.60 rupees a kg, up 1.3%
* Outlook for the evening session on MCX:
–Aluminium contract seen 245.3-251.5 rupees per kg
–Copper contract seen 750-760.5 rupees per kg
–Lead contract seen 184.50-191.50 rupees per kg
–Nickel contract seen 1,697-1,752 rupees per kg
–Zinc contract seen 297.60–302 rupees per kg
End
US$1 = 75.07 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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