Back

India Base Metals:Down in line with equities on US-China trade worry

Wednesday, Sep 25, 2019

 

By Shrea Paul

 

Mumbai – Futures contract of base metals on Multi Commodity Exchange of India fell tracking similar trend in most contracts on London Metal Exchange, which was in line with the global equities. Risk aversion was prompted by an impeachment enquiry against US President Donald Trump as well as due to US-China trade tensions.

 

A firm dollar against a basket of other major currencies also weighed on the global prices of base metals. 

 

On Tuesday, Democrats in the US House of Representatives announced an impeachment enquiry against US President Donald Trump. They accused him of attempting to damage the reputation of Democratic candidate Joe Biden ahead of the 2020 elections.  

 

On the US-China trade war front, Donald Trump criticised trade policies of China and said he would not accept a "bad deal" from them, leading to fresh fear over an escalation in the trade war. 

 

"It's not a deal that's going to get done quickly," Trump said at the United Nations General Assembly on Tuesday.

 

"The comments from Trump come just weeks before top negotiators from both sides are due to meet in Washington, dampening any optimism of an interim trade deal being struck and sending a wave of risk-off through the markets," as per a report by metalbulletin.com.

 

Comments from People's Bank of China Governor Yi Gang that another monetary stimulus to support the economy was unlikely, which was also a negative for base metal prices. 

 

Additionally, subdued demand at higher prices from the stainless steel sector weighed on Nickel futures. 

 

At 1753 IST, on MCX, futures contracts of:
–Sep aluminium was at 135.7 rupees a kg, down 0.3%
–Sep copper was at 438.7 rupees a kg, down 0.7%
–Sep lead was at 153.9 rupees a kg, down 0.1%
–Sep nickel was at 1,231.0 rupees a kg, down 0.2%
–Sep zinc was at 178.9 rupees a kg, down 0.6%

 

OUTLOOK

The September copper contract on MCX is seen trading at 435.0-447.0 rupees per kg, and nickel at 1,210.0-1,255.0 rupees, while the September zinc contract is seen at 176.5-182.5 rupees a kg, Angel Broking said in a note.  End

 

US$1 = 71.03 rupees

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

 

Edited by Mainak Moitra

 

Cogencis Tel +91 (11) 4220-1000

Send comments to feedback@cogencis.com

This copy was first published on the Cogencis WorkStation

© Cogencis Information Services Ltd. 2019. All rights reserved.

Other News

West Bengal tightens restrictions till May 30 to contain COVID-19

Informist, Saturday, May 15, 2021 KOLKATA – The West Bengal government today tightened curbs to contain the spread of the COVID-19 pandemic, thereby bringing the state to nearly a lockdown like situation for 15 days starting Sunday. "Stricter restrictions and measures are being brought in to control the spread of the virus and reduce the pressure on health […]

Cash holdings of states falls to 6-month low of 2.13 trln rupees Apr

Informist, Friday, May 14, 2021 By Adrija Chatterjee NEW DELHI — Cash holdings of state governments fell to a six-month low of 2.13 trln rupees at the end of April, suggesting that many of them dipped into their substantial cash piles to meet expenses, data from the finance ministry showed.  According to the monthly summary report of the expenditure […]

NITI Aayog discusses fiscal package options amid surge in COVID cases

Informist, Friday, May 14, 2021 –Source: Direct transfer, higher infra spend among fiscal options By Tushar Chakrabarty NEW DELHI – The NITI Aayog has begun discussions on whether India needs another fiscal package to boost the economy in the backdrop of the devastating second wave of the COVID-19 pandemic, a senior government official said. "We are mulling if a fiscal response […]