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India Base Metals: Most fall; Nickel down on rise in LME-inventory

Thursday, Jan 23

 

By Rituparna Ghosh

 

NEW DELHI – Futures contracts of nickel on the Multi Commodity Exchange and the London Metal Exchange fell today due to a sharp rise in the stockpile of the metal, analysts said. 

 

Nickel stock at LME-monitored warehouses were at 192,912 tn today as against 187,914 tn on Wednesday, while stockpile at the MCX-accredited warehouse stood flat at 33.43 tn, data showed. 

 

Prices of lead and zinc also fell today global deficit of both the metals narrowed from the previous-year period. As per data from the International Lead and Zinc Study Group, the global zinc market was at a deficit of 170,000 tn in Jan-Nov as against 448,000 tn in the year-ago period, while the global lead market was at a deficit of 33,000 tn in Jan-Nov as against 82,000 tn in the previous-year period.

 

Moreover, prices also came under pressure as the study group said it believes that a considerable expansion in global production of lead and zinc will allow the market to switch into surplus—a relatively large one–this year.

 

"In our view, the prospect of high supply surpluses on both the zinc and lead markets suggests that prices will fall," Commerzbank AG said in a note. 

 

Copper and aluminium prices were confined to a thin range today as investors avoided taking large bets ahead of the Chinese New Year and on risk aversion due to the spread of coronavirus in China.

 

According to media reports, 17 people have died and over 600 affected by the virus. China has blocked travelling from and into Wuhan, where the virus is expected to have originated.

 

Chinese markets will remain closed from Jan 24-30 on account of Chinese New Year. 

 

At 1710 IST, on MCX, the January futures contract of:

–aluminium was at 141.01 rupees a kg, down 0.1%
–copper was at 449.95 rupees a kg, down 0.2%

–lead was at 151.85 rupees a kg, down 0.2%
–nickel at 1,008.40 rupees a kg, down 0.6%

–zinc at 180.70 rupees a kg, down 0.3%

 

OUTLOOK

On MCX, the January copper contract is seen at 448-456 rupees per kg, while the same-month nickel contract is seen at 1,002-1,026 rupees per kg in the evening session. The January contract of zinc is seen at 179-183 rupees per kg, and the same-month aluminium contract is seen at 139.0-143.0 rupees per kg, Angel Broking said in a report.  End

 

US$1 = 71.27 rupees

 

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

 

Edited by Mainak Moitra

 

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This copy was first published on the Cogencis WorkStation

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