Base metals futures decline on demand concerns

Base metals futures decline on demand concerns

New Delhi: Base metals futures remained in the negative zone on sustained selling by traders, influenced by weakening trend on the global front.

Copper for the most-active February contract fell 1.06% at Rs168.80 per kg on the Multi Commodity Exchange (MCE). The contract recorded a business volume of 4,758 lots. For April contract, the metal declined 0.8% to Rs172.75 per kg in trading of 242 lots.

Aluminium for January-month contract fell 1.91% to Rs77 per kg in trading of one lot, while its December contract shed 0.78% to Rs76.3 per kg with trading volume of 34 lots.

In restricted activity, lead for December month contract traded lower by 0.10% at Rs49 per kg with trading volume of 477 lots.

Trading sentiments remained weak on MCE following a slowing demand in spot market amid reports of weakening trend from major metal consuming nations on fears of a deepening global recession.

Slowdown in China, the world’s largest user, eroded demand for the metal used in cars and homes.

Nickel for January-month contract slipped 0.31% to Rs475.50 with trading volume of 32 lots and December by 0.17% to Rs462.30 per kg in trading of 414 lots.

Nickel inventories in warehouses monitored by the London Metal Exchange increased by 810 tonnes, or 1.3%, to 64,944 tonnes, the most since February 1999.

In line with general weakening trend, zinc for February tumbled 2.68% to Rs58.10 per kg in trading of 15 lots, December-month contract by 2.43% to Rs56.15 per kg in transaction of 785 lots, while January-month contract by 2.3% at Rs57.30 per kg. Its clocked a business volume of 47 lots.