Capping off a recent rally, base metals ended the historic month on sour note on Monday, 31st October. The higher US dollar amid the Japanese government intervention to curb the yen appreciation coupled with the many skeptic views and hiccups on the implementation of the European plan derailed the recent rally.
Investors fret over the debt plan escalated by the announcement of Greece Prime Minister George Papandreou who called for a popular referendum on the European Union aid-and-debt deal on Monday.
Further, investors were eyed onto the outcome of the two-day Federal Reserve's policy-setting committee, which will start on Tuesday this week and releases the updated forecasts of economic growth.
Meanwhile, the Institute for Supply Management-Chicago reported that Chicago Business Barometer fell to 58.4 in October against a 60.4 in September, the lowest reading since May also added to the sour sentiment.
The dollar index surged by 1.47% at 76.17 against the basket of 6 major currencies as the fall in euro and yen conspired with ongoing global economic worries prompted the dollar as safe haven.
In the domestic market at MCX, aluminum, nickel, lead and zinc encountered huge long liquidation due to the expiry of October contract. While short selling was seen in the November contract of nickel and aluminium. Appreciation in rupee also hammered the metals to end lower.
Copper for delivery in November plunged by 1.45% or Rs. 5.8 at Rs. 392.95 per kg with its high at Rs. 397 per kg and low at Rs. 386.05 per kg. Aluminium shed by 1% or Rs. 1.1 at Rs. 108.45 per kg with its high at Rs. 109 per kg and low at Rs. 107.1 per kg. Nickel for delivery in October strengthened by 3.76% or Rs. 34.1 at Rs. 941.8 per kg with its high at Rs. 948.5 per kg and low at Rs. 912 per kg. Battery material lead ended flat at Rs. 101.4 per kg with its high at Rs. 101.75 per kg and low at Rs. 98 per kg. Zinc gained 0.62% or Rs. 0.6 at Rs. 96.7 per kg with its high at Rs. 97.1 per kg and low at Rs. 94.2 per kg.
In overseas market at Comex, Copper futures for most active December contract settled at $3.632 a pound, down 2% or 7 cents compared to the previous day that ended at $3.706 a pound.
At LME, the Three-month-delivery copper on the London Metal Exchange ended lower by $80.5, or 1.01% at $7,920 a metric ton. Copper inventories on the LME warehouse fell by 3000 tonnes from previous day to close at 429,375 tonnes.
Among other traded metals at LME , lead in London depreciated by 0.25% at $2,005 a ton and nickel weakened by 2.66% to $19,225 a ton. Aluminum ended lower at $2,208 a ton, down 1.49% and zinc rose by 0.21% to end at $1,932 a ton.
