Back

India Base Metals: Most up on weak US dlr, COVID-19 vaccine optimism

Tuesday, Nov 17, 2020

 

By Rituparna Ghosh  

 

NEW DELHI – Futures contracts of most base metals on the Multi Commodity Exchange of India were up today tracking parent contracts on the London Metal Exchange due to weakness in the US dollar and reports that a vaccine developed by Moderna Inc was found to be 94.5% effective in preventing COVID-19, analysts said.

 

* Data on China's industrial production also supported metal prices, as it climbed 6.9% on year in October, according to reports citing data from the National Statistics Bureau.

 

* ALUMINIUM prices were higher today due to declining stockpiles of the metal at LME-monitored warehouses. However, a sharp rise was prevented as China's aluminium production rose 9.7% on year to 3.2 mln tn in October. Production has risen 3.5% on year to 30.63 mln tn during the first 10 months this year, according to China's statistics bureau.

 

* According to Commerzbank AG, the rising aluminium production is likely to exert pressure on prices going ahead as this winter, most Chinese aluminium smelters would continue operations as they have upgraded their facilities to comply with new emissions standards.

 

"Market participants are continuing to ignore the high production and resulting surpluses and are pushing the aluminium price ever higher with their financial transactions," it added.

 

* ZINC prices were up as social inventories in China eased 1,600 tn to 166,100 tn across seven Chinese provinces, according to Shanghai Metals Market. 

 

* COPPER and NICKEL prices were down due to profit booking. However, a sharp fall in copper was prevented due to supply disruption in Chile. Nickel prices rose to an over two-week high of $16,150 per tn on LME and a one-month high of 1,213.5 rupees a kg on MCX on Monday.

 

* Following are key highlights of trade in base metals today:

 

  At 1735 IST, on MCX, the November futures contract of:

  –Aluminium was at 161.1 rupees a kg, up 0.6%

  –Copper at 545.4 rupees a kg, down 0.2%

  –Lead at 153.5 rupees a kg, up 0.3%

  –Nickel at 1,187.2 rupees a kg, down 0.5%

  –Zinc at 213.6 rupees a kg, up 0.2% 

 

* Outlook for the evening session on MCX:

  –Nov aluminium contract seen 153-168 rupees per kg

  –Nov copper contract seen 535-550 rupees per kg

  –Nov lead contract seen 146-157 rupees per kg

  –Nov nickel contract seen 1,180-1,195 rupees per kg

  –Nov zinc contract seen 199-220 rupees per kg

 

End

 

US$1 = 74.46 rupees

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

 

Edited by Avishek Dutta

 

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. 2020. All rights reserved.

Other News

TREND: Lenders’ optimism drives Indian equity binge of FPIs

Friday, Nov 27, 2020 By Chiranjivi Chakraborty MUMBAI – The domestic equity market has attracted 705 bln rupees in net foreign inflows since Oct 1, likely to be the largest ever flows in a two-month period, and it has outperformed peers across the emerging markets basket. While a confluence of external factors have seen money pour into equities of […]

Govt source says FY21 tax shortfall seen around 2.6 trln rupees

Friday, Nov 27, 2020 –Govt source: See FY21 tax mop-up marginally lower than FY20 revised aim –May cut FY21 tax aim sharply after Dec advance tax  By Adrija Chatterjee and Shubham Batra NEW DELHI – The Indian economy may be showing signs of recovery, but tax collections in the current financial year ending March are likely to fall short […]

TREND: FIIs enter Dec F&O series with high hopes, but DIIs cautious

Friday, Nov 27, 2020 By Chiranjivi Chakraborty MUMBAI – After a record-breaking buying spree in the November derivative series, foreign institutional investors have started the new futures and options series with bullishness at a multi-year high.  The optimism comes in the backdrop of increasing probability of the mass distribution of COVID-19 vaccines in major countries from the March […]