Lead futures settled slightly lower at Rs 155.80 per kg on January 1 as participants trimmed their position as seen by the open interest. The base metal ended the week with a gain of Rs 2.35 or 1.53 percent for the week.
MCX Lead futures traded bearishly during December owing to rising worries about the situation worldwide regarding the second outbreak of the COVID-19. This has dampened the demand for Lead in the global markets along with other base metals.
Sunand Subramaniam, Senior Research Associate at Choice Broking said, “Looking forward to the coming month, we expect MCX Lead futures to trade mixed due to weaker Dollar index with another lockdown phase in the United States and the European Union. China and other Asian countries usage which had been leading in the previous month, however, this year may start sluggish amid COVID-19.”
According to the International Lead and Zinc Study Group (ILZSG), global refined lead production for October 2020 has reported at 1,030.1 thousand metric tonnes (MT), higher by 3.54 percent compared to the previous month’s production of 994.9 thousand metric tonnes.
In the futures market, lead for January delivery touched an intraday high of Rs 156.55 and a low of Rs 155.70 per kg on the MCX. So far in the current series, the base metal has touched a low of Rs 154.30 and a high of Rs 164.
Lead delivery for January contract slipped Rs 0.20, or 0.13 percent, to settle at Rs 155.80 per kg with a business turnover of 474 lots. The same for the February contract gained Rs 0.30, or 0.19 percent, to close at Rs 157.15 per kg with a turnover of 9 lots.
The value of January and February’s contracts traded on January 1 was Rs 46.60 crore and Rs 0.15 crore, respectively.
Subramaniam expects a sideways to bearish movement in MCX Lead January futures for the month ahead. On the higher end, the price may find resistance at Rs 160.20 levels, while on the lower end it may test the support of Rs 152 levels.
The base metal end with a loss of 0.29 percent quoting at $1,987.25 per tonne in London.
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