Informist, Thursday, Jul 20, 2023
By Sandeep Sinha
MUMBAI – Futures contracts of all the base metals rose today on the Multi Commodity Exchange of India and the London Metal Exchange on expectation of further policy support being unveiled at the Communist Party of China's Politburo meeting next week.
Such expectations also saw the yuan rise 0.8% to 7.16 against the dollar, making dollar-denominated base metals cheaper for Chinese buyers.
Moreover, The People's Bank of China today kept its five-year loan prime rate unchanged at 4.20% and its one-year loan prime rate steady at 3.55% in line with market expectations.
The positive sentiment in non-ferrous metals was aided by value buying after a sharp fall in the past few trading sessions.
COPPER gained, tracking weakness in the dollar, which typically has an inverse correlation with the base metal. Copper is the energy-transition trade within the commodities complex, Dow Jones Newswires quoted Citi Research analysts saying in a note.
For further cues, market players are waiting for US existing home sales, Philadelphia Fed manufacturing index, and initial jobless claims data later in the day.
ALUMINIUM prices gained due to fall in stocks at LME-accredited warehouses by 1,200 tn and traders trimming their short positions on the domestic bourse.
LEAD contracts traded higher as market players raised their long positions on the MCX. However, the upside was limited on rise in inventory by 50 tn at LME-registered warehouses.
ZINC contracts rose as higher energy prices in Europe may force smelters to run plants at low capacity, which may result in tight supply.
* At 1655 IST, on the MCX, the July futures contract of:
–Aluminium was at 197.55 rupees a kg, up 0.7%
–Copper was at 731.65 rupees a kg, up 1.3%
–Lead was at 181.90 rupees a kg, up 0.2%
–Zinc was at 214.70 rupees a kg, up 1.2%
* Outlook for the evening session on the MCX:
–Aluminium contract seen at 195.10-198.70 rupees
–Copper seen at 726.40-738.10 rupees
–Lead seen at 181.0-183.30 rupees
–Zinc seen at 211.10–216.30 rupees
End
US$1 = 81.99 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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