Mumbai, 5 October Copper futures edged higher today tracking firm London Metal Exchange prices and a weak dollar, but nickel fell as stocks piled up in the warehouses, analysts said.
“There is no price discovery in the Indian market. In general our markets follow the price discovery on LME,” said Navneet Damani, an analyst with Anand Rathi Commodities.
London Metal Exchange copper rose half a percent today, holding below a five month-peak, but investors were cautious ahead of US jobs data later in the day.
The most-traded November copper on the Multi Commodity Exchange of India (MCX) was up 0.45% at Rs324.75 a kg, at 2.45 p.m.
Traders are also eyeing the London Metal Exchange dinner scheduled next week, analysts said.
Metal consumers, producers and analysts gather for a series of meetings, seminars and cocktail receptions at the dinner -- and in the past has coincided with very significant price moves.
A strike at Southern Copper entered its third day, affecting Southern’s Cuajone and Toquepala mines which produce 370,000 tonnes of copper annually, and its 350,000-tonne Ilo smelter.
“Due to the ongoing strike copper prices are also holding up,” said Vinod Maloo, an analyst with Indiabulls Commodities Pvt Ltd.
Copper stocks in London Metal Exchange-monitored warehouses were up 150 tonnes at 131,775 tonnes today.
MCX zinc futures rose on falling stocks in exchange warehouses, analysts said.
At 2.45 p.m., the October contract was up 0.9% at Rs123.45 a kg.
Stocks in the LME-registered warehouses were 59,400 tonnes, down 625 tonnes from the previous session.
MCX lead futures moved up due to ongoing supply disruptions in Australia and falling exports from China, analysts said.
At 2.45 p.m., MCX October contract <MLDV7> was up 1.6 percent at Rs146.45 a kg.
Stocks in the LME warehouses fell by 25 tonnes to 22,275 tonnes.
MCX October nickel was quoted at Rs1,216.50 a kg, down 1.64% from the previous close, on rising stocks in the warehouses, analysts said.
“The only reason was higher stocks in LME...after the inventory data came nickel prices fell,” said Indiabulls analyst Maloo.
Stocks in the LME warehouses stood at 35,250 tonnes, up 2,322 tonnes from the previous session.
Aluminium futures remained subdued on Friday due to plentiful stocks in LME warehouses, analysts said.
The most-traded Aluminium October contract traded at Rs95.90 a kg, down 0.16% from the previous close.
Stocks in LME warehouses stood at 937,775 tonnes, up 50 tonnes.