Base metals futures prices on MCX tumbled last week on heavy selling pressure following the overseas weakness. Lead metal futures lost 11% while copper and zinc futures fell 4% and 6% respectively last week on fears of disruption in supply
The rise in Yen, falling equity markets on housing market woes and credit crunch with rating agencies cutting ratings on loans given to home buyers fueled the fall the commodity markets, analyst said.
In the bullion market, gold and silver weakened 2.74% and 4.37% respectively. The expiring July Lead contract was down Rs 16.05 or 11.43% to trade at Rs 124.30 per kg. The open interest was 2,475 tonne. LME Lead was traded at $3,080 a tonne, down by $400 a tonne over last week. Codelco, the world?s biggest copper producer, said contract workers disrupted production at its smallest mine and temporarily blockaded another mine during protests to press for higher wages. The active nickel contract was up Rs 137.50 or 9.73% to trade at Rs 1,275.30 per kg. The open interest was 1,107 tonne. LME nickel was traded higher at $31,265 a tonne, up by $3,980 a tonne. Markets may see some rebound of this fall but the overall sentiment has turned bearish in metals due to heavy selling. The active August copper contract was down Rs 13.15 a kg or 4.81% to trade at Rs 314.25 per kg. The open interest was 13,833 tonnes. LME copper was traded lower at $7,873 a tonne, down by $333.
The active August Zinc contract was lower Rs 8.90 or 5.87% to trade at Rs 142.65 per kg. The open interest was 18,240 kg. London zinc was traded lower at $3,531 an ounce on Friday. The galvanised steel demand is expected to pick up after the month of August.The active August crude oil contract was up Rs 19 or 0.62% to trade at Rs. 3,045 per barrel. The open interest was 16.56 lakh barrels. Crude oil WTI spot was traded lower at $74.96 a barrel, down by $0.57. The active August gold contract was up Rs 245 or 2.74% to trade at Rs 8,677 per 10 gram.