Informist, Wednesday, Jul 13, 2022

By Sandeep Sinha

MUMBAI – Futures contracts of most base metal futures rose on the Multi Commodity Exchange of India and London Metal Exchange due to short-covering ahead of the US consumer price index data later today. The non-ferrous metals fell sharply on Tuesday due to concerns about demand in top consumer China after renewed COVID-19 curbs and fears of a global economic slowdown. 

* The decline in LME stocks and the rupee's weakness against the dollar, which makes dollar-denominated commodities expensive for domestic buyers, boosted sentiment. 

* Most non-ferrous metals are in deeply oversold territory, which may bring bargain hunters back into the physical market to take advantage of lower prices after a sharp decline in the past few sessions.

* Investors are keeping a close watch on updates from the People's Bank of China regarding stimulus measures to revive the slowing economy.

* The dollar index was near its two-decade high against major currencies, which limited the upside in base metals.

* ALUMINIUM price rebounded on MCX as the metal was trading at an extremely oversold level and short-covering of positions by traders.

* LEAD contract pared earlier losses and traded near the highs of the day as the short-term moving averages turned positive. 

* At 1650 IST, on the MCX, the July futures contract of:

 --Aluminium was at 206.35 rupees, up 0.3% 

 --COPPER was at 627.25 rupees a kg, up 0.1% 

 --Lead was at 175.15 rupees a kg, up 0.4%

 --ZINC was at 272.65 rupees a kg, down 0.4%

* Outlook for the evening session on MCX:

 --Aluminium contract seen at 201.20-212.30 rupees a kg

 --Copper seen at 618.0-635.0 rupees a kg

 --Lead seen at 171.70-178.10 rupees a kg

 --Zinc seen at 269.40–278.90 rupees a kg

End

US$1 = 79.63 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shirsha Thakur

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