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

Trade min for alternative to sugar export sop as WTO deadline nears

Thursday, Sep 24, 2020 By Preeti Bhagat NEW DELHI – The commerce ministry has suggested adopting mechanisms other than export subsidy for supporting the sugar sector, as justifying such sops would become difficult at the World Trade Organisation. The ministry's comments were made in response to a draft Cabinet note on sugar export subsidy for 2020-21 (Oct-Sep), a senior government […]

SEBI Watch: Speed up probe in Sterling & Wilson promoter loan matter

Thursday, Sep 24, 2020 By Rajesh Gajra The Securities and Exchange Board of India's probe into the Sterling and Wilson Solar case has gone on for several months now, even as investors are turning wary. As the case brings to the fore doubts over corporate governance practices at a large, reputed group, it is appropriate that the […]

India Sugar:Falls in north India on weak buys; ICE dn post 5-wk high

Thursday, Sep 24, 2020 By S. Anirudh Iyer NEW DELHI – Ex-mill prices of sugar in north India fell today, while prices in Maharashtra were flat.  * Prices of the sweetener in key wholesale markets in north India were lower because of weak demand from bulk buyers.  * In key markets in Maharashtra, prices were flat because of lack of […]