Base metals were trading sideways with negative bias on Monday, 13th February after obtaining modest gains during the morning session. Although, the passage of Greece key austerity vote during the early hours improved the sentiment the Greece must still find further 325 million euros ($428.6 million) of spending cuts and give binding assurances before the euro zone finance ministers summit to unveil a new 130 billion second bailout on Wednesday this week. Rupee appreciation further hammering metals at domestic bourses, MCX.
LME Copper easing by 1% at $851.25 per tonne on Monday and Comex Copper future for the most active March contract was trading at $3.884 a pound, up 0.6% (2 cents). SHFE Copper future for most active April 2012 contract settled at 60800 yuan per tonne, down by 1.5% (960 yuan). Likewise at MCX, Copper for delivery in February was receding by 0.4% or Rs 1.6 at at Rs 422.85 per kg with its intraday high at Rs 425.65 per kg and low at Rs 422 per kg.
The dollar index shed by 0.6% at 78.68 against the basket of 6 major currencies as the improvement over the Greece situation prompted investors to stay on risky assets and pressurized the safe haven dollar.
Euro group chairman Jean-Claude Juncker last week urged the Greek Parliament to find a further EUR325 million in savings to cover budget shortfall for 2012. The latest austerity plan included a 22% reduction in minimum wages, 15% pension cuts and 15,000 job public sector job cuts.
Meanwhile, eastern China won't proceed with planned property-loosening measures announced last Thursday, 9th February. Eastern city of Wuhu suspended a decision to ease property curbs three days after its announcement, signaling that the central government won't relax policies any time soon also hampering the sentiment.
Italy sold 12 billion euros ($16 billion) of T-bills successfully and reached its craping metals from its further downfall, while Germany is set to hold an auction of 4 billion euros of six-month bills later today.
Among other metals at LME, Aluminium was edging down by 0.2% at $2253.5 per tonne and Lead was trading lower by 1.6% at $2155 per tonne. Nickel was easing by 0.8% at $20,931 per tonne and Zinc was also dropping by 1.6% at $2089.75 per tonne.
Among other metals in the domestic market at MCX, Aluminium was trading lower by 0.8% or Rs 0.9 at Rs 109.85 per kg. Zinc was also rising by 0.6% or Rs 0.6 at Rs 102.95 per kg. Nickel for delivery in February tested a high of Rs 1039 per kg and low of Rs 1031.2 per kg in intraday and is now trading at Rs 1032.6 per kg, down 0.2% or Rs 2.1.
Lead was dropping by 0.6% or Rs 0.6 at Rs 105.7 per kg with its intraday high at Rs 106.4 per kg and low at Rs 105.3 per kg. The open interest added by 12.5% to 6911 lots indicating short selling and volume traded as of now stood at 6175 lots. The contract was trading below 100-day EMA and RSI stood at 38.87.
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