MCX Base Metal Tips: Zinc rallies over 1% on firm physical demand

MCX Base Metal Tips: Zinc futures surged by more than 1% in the domestic market on Monday as investors and speculators booked fresh positions in the industrial metal amidst a pickup in physical demand for zinc in the domestic spot market.

Further, hopes of a pickup in demand from China, the world’s biggest metals consumer after policymakers committed to cut overcapacity in key industries such as steel also buoyed sentiment.

Investors shrugged off weak German data which showed a plunge in business confidence for a second straight month in January, clouding the demand outlook for metals in Europe’s biggest economy. The gauge measuring German business sentiment fell to 107.3 in January from 108.6 in December.

At the MCX, Zinc futures for January 2016 contract closed at Rs 103.15 per kg, up by 1.13 per cent after opening at Rs 101.6, against the last closing price of Rs 102. It touched the intra-day high of Rs 103.25.

MCX Base Metal Tips: Copper bites the dust on China worries

MCX Base Metal Tips: Copper futures fell in the domestic market on Mon as investors and speculators exited positions in the industrial metal amidst worries that demand from top consumer China may weaken in the coming days ahead of the Lunar New Year holidays when factories and businesses remain shut for a week due to festivities.

China accounts for more than 40 per cent of the metals consumption.

However, the losses in the base metal were curbed by the prospects of a stimulus boost in the 19-member Euro area economy after the European Central Bank (ECB) on Thursday indicated that it may consider expanding its easing program in March, supporting the metal’s demand outlook.

At the MCX, Copper futures for February 2016 contract is trading at Rs 300.1 per kg, down by 0.38 per cent after opening at Rs 300.4, against the previous closing price of Rs 301.25. It touched the intra-day low of Rs 299.6. (At 11:45 AM).

MCX GOLD TIPS | Bullion lower as safe haven appeal fades

MCX GOLD TIPS: Gold futures fell during noon trade in the domestic market on Friday as a rebound in global equities amid easing concerns over China after the country’s officials moved to calm volatility in stock markets by abandoning a system of market circuit breakers whilst refraining from a further reduction in the Yuan’s reference rate, dimmed the safe haven lure for the yellow metal.

Traders also resorted to profit-booking in the precious metal after a stellar rally over the past few sessions when heightened geopolitical tensions amidst the Saudi-Iran tussle, North Korea’s successful testing of a hydrogen bomb, and a China stock market rout that wiped out more than USD 2 trillion from global equities, had sparked a surge in safe haven inflows into the bullion.

Caution ahead of the monthly US payrolls data which may show that the world’s biggest economy probably added 200,000 jobs in December, signaling strength in the country’s labour market recovery, bolstering the case for the US Fed to keep lifting interest rates this year, and dimming the lure for Gold as a store of value, also weighed on Gold futures.

At the MCX, Gold futures for February 2016 contract is trading at Rs 25,936 per 10 gram, down by 0.63 per cent after opening at Rs 26,022, against the previous closing price of Rs 26,100. It touched the intra-day low of Rs 25,931. (At 12:08 PM).

MCX BASE METAL TIPS | China rout takes down Zinc as prices slip over 3%

MCX BASE METAL TIPS: Zinc futures slid by more than 3% in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amidst subdued physical demand for zinc in the domestic spot market.

Stock market turmoil in China, the world’s largest metals consumer, threatened to signal deep-rooted problems in world’s second biggest economy, darkening the demand outlook for Zinc. The Chinese central bank lowered the value of the country’s currency by the most since March 2011, fueling fears over China’s economic health, and causing an exodus from equities worldwide with the Shanghai Composite falling over 7%, triggering an automatic circuit breaker, leading to a trading suspension for the second time this week. Investors fear that China’s move to weaken the Yuan may hurt Chinese metal demand as a weaker currency threatens to curb imports.

Traders cast aside data showing a surge in German factory orders in November, signaling a pickup in Europe’s biggest economy, buoying the demand outlook for base metals. Bookings for German factory goods climbed 1.5 per cent in November over the previous month.

At the MCX, Zinc futures for January 2016 contract closed at Rs 99.45 per kg, down by 3.45 per cent after opening at Rs 102.1, against the previous closing price of Rs 103. It touched the intra-day low of Rs 98.15.

MCX BASE METAL TIPS | Zinc tanks over 2% on global growth fears

MCX BASE METAL TIPS: Zinc futures slid more than 2 per cent during noon trade in the domestic market on Thursday as investors and speculators exited positions in the industrial metal amidst weak physical demand for zinc in the domestic spot market.

Further, a slowing global economy darkened the demand outlook for industrial metals as the World Bank cut the global growth forecasts for 2016 to 2.9 per cent from 3.3% estimated earlier as a slowdown in China prolongs a commodity slump while Brazil and Russia suffer steep recessions. China’s economic growth forecast was cut to 6.7 per cent in 2016 from 7 per cent estimated earlier, while the economy is set to slow further to 6.5 per cent in 2017.

Meanwhile, US services growth slowed in December and factory orders fell 0.2% in November, signaling a cooling recovery in the world’s biggest economy that threatens to curb metal demand. The gauge measuring services activity in the US fell to 55.3 last month from 55.9 in November, but remaining above the neutral 50-mark.

At the MCX, Zinc futures for January 2016 contract closed at Rs 100.75 per kg, down by 2.18 per cent after opening at Rs 102.1, against the previous closing price of Rupees 103. It touched the intra-day low of Rs 100.55. (At 12:28 PM).

COMMODITY TRADING TIPS | Yellow metal dazzles on rising safe haven appeal

COMMODITY TRADING TIPS: Gold futures soared by over 1 per cent in the domestic market on Wednesday as investors and speculators booked fresh positions in the precious metal tracking a firm trend in the overseas market where the bullion marked its best finish in two months as heightened geopolitical worries and signs of a worsening slowdown in China boosted the safe haven lure for Gold. North Korea said that it successfully staged its first test of a more powerful form of nuclear weapon, while the Saudi-Iran row threatened to escalate into a sectarian crisis in the already fragile Middle East region. Worries over a global slowdown also bolstered gold as the World Bank cut the global growth forecast for 2016 to 2.9 per cent from 3.3 per cent estimated earlier as a slowdown in China prolongs a commodity slump while Brazil and Russia suffer steep recessions. China weakened the yuan’s reference rate by the most since August, raising concerns over a worsening slowdown in the world’s second biggest economy, pushing global equity markets into a tailspin as traders shunned risky assets, seeking shelter in the safety of the yellow metal. The Dow Jones Industrial Average plunged 1.47 per cent; the Nasdaq Composite dropped 1.14 per cent while S&P 500 fell 1.31 per cent. Weakness in equities bolstered the lure for gold as an alternative asset. Minutes from the Fed’s December meet, released on Wednesday which showed that policymakers saw the decision to raise interest rates in December as a “close call” didn’t have much of an impact on Gold traders. “Almost all” of the FOMC members were satisfied that the criteria for tightening policy rates had been met, the minutes showed. A weaker dollar also bolstered the lure for the bullion as an alternative asset. Weaker greenback makes Gold cheaper for those holding other currencies, thus bolstering demand. Gold may extend gains today as a renewed rout in China pushes global markets into a freefall, boosting demand for safe haven assets. At the MCX, Gold futures for February 2016 contract is trading at Rs 25,741 per 10 gram, up by 1.39 per cent after opening at Rs 25,469, against the previous closing price of Rs 25,388. It touched the intra-day high of Rs 25,784.

BASE METAL TIPS | Zinc drops on weak global cues

BASE METAL TIPS: Zinc futures fell by 0.96% to Rs 103.35 per kg today as speculators reduced positions in the midst of a weak trend globally. Besides, low demand in Indian spot markets fuelled the downtrend. Zinc futures for January 2016 agreement, at MCX, were trading at Rs 103.35 per kg, down by 0.96 per cent after opening at Rs. 104.05 against the last closing price of Rs. 104.35. It touched the intra-day low of Rs. 103 till the trading. (At 3.50 PM today). Further, service sector activity in Spain fell more-than-expected last month, industry data showed on Wednesday signaling weak sentiment in the region which reduced the requirement for the metal. In a report, Markit Finacial Information Services said that Spanish services PMI fell to a seasonally adjusted 55.1, from 56.7 in the preceding month.

Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zinc importing countries are China, USA and Germany.