India Base Metals
Copper up ahead of Fed Dec meet minutes, fall in stocks
This story was originally published at 17:27 IST on 8 January 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of COPPER rose on the Multi Commodity Exchange of India and the London Metal Exchange ahead of the minutes of the US Federal Open Market Committee's December meeting, due early Thursday. Market sentiment was lifted by a fall in inventories at LME-accredited warehouses.
However, the upside in copper prices was restricted by a firm dollar. At 1649 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 108.97. A stronger dollar makes commodities such as copper, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.
Copper inventories at warehouses registered with the LME fell by 1,450 tonnes to 265,700 tonnes. Meanwhile, lingering uncertainty surrounding the likely re-imposition of tariffs by the US on Chinese goods continues to cast a shadow over market sentiment, Kotak Securities said in a report.
Investors await China's consumer price index data, due Thursday, and the US non-farm payrolls data, due Friday, for further cues.
ALUMINIUM prices were steady but with a negative bias. Aluminium futures have slumped since the start of 2025 as supply shortages have eased, with demand falling in the traditional off-season before the Lunar New Year, Dow Jones quoted Howard Lau, analyst at HSBC, as saying in a note. However, going forward, aluminium should rebound, with demand-supply dynamics staying favourable. Supply growth is expected to be limited, while structural demand growth from renewables should offset China's property-sector weakness, Lau added.
ZINC contracts traded in the red, taking cues from LME because of a firm dollar.
At 1649 IST, on the MCX, the January futures contract of:
–Aluminium was steady at INR 240.25 a kg
–Copper was at INR 820.30 a kg, up 0.5%
–Lead was at INR 177.40 a kg, down 0.2%
–Zinc was at INR 272.55 a kg, down 0.5%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 237.40-243.70
-Copper contract seen at INR 807.10-834.30
-Lead contract seen at INR 175.90-179.10
-Zinc contract seen at INR 268.10-277.70
End
US$1 = INR 85.84
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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