More Stories

Informist, Monday, Jan. 20, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of base metals were mixed on the Multi Commodity Exchange of India and the London Metal Exchange Monday as market participants remained cautious ahead of the swearing-in of Donald Trump as the US President later in the day. Prices of COPPER and ZINC fell while those of ALUMINIUM and LEAD were up.

Uncertainty surrounding the policies of Trump weighed on sentiment as traders awaited clarity on potential policy shifts, particularly regarding trade tariffs, Kotak Securities said in a note. Trading volumes were muted as the US markets were closed because of a national holiday on account of Martin Luther King Jr Day.

Aluminium contracts edged higher, taking cues from the LME because of a weaker dollar, which makes commodities priced in the greenback cheaper for buyers holding other currencies. At 1833 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was down 0.3% at 109.06.

Sentiment was boosted as aluminium could be included in the new measures to punish Russia for its invasion of Ukraine. The potential restrictions could be gradual, and the scope is yet to be determined, Daniel Hynes, senior commodity strategist at ANZ Research said in a note, citing a report by Bloomberg.

Copper prices fell as inventories at warehouses monitored by the Shanghai Futures Exchange rose by 10,118 tonnes on week to 88,796 tonnes in the week ended Friday. Additionally, China's central bank maintained key lending rates, which weighed on sentiment. The People's Bank of China kept its one-year loan prime rate unchanged at 3.10% and the five-year lending rate was kept unchanged at 3.6%. China is the world's largest consumer of the red metal.

"Investor sentiment is likely weighed after three consecutive months of unchanged rates despite Beijing's pledge to boost demand," Dow Jones quoted analysts at Tongguan Jinyuan Futures as saying.

At 1833 IST, on the MCX, the January futures contract of:

–Aluminium was at INR 256.35 a kg, up 0.1%

–Copper was at INR 830.95 a kg, down 0.2%

–Lead was at INR 177.85 a kg, up 0.1%

–Zinc was at INR 277.05 a kg, down 0.2%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 251.40-INR 260.00

-Copper contract seen at INR 819.00-INR 842.00

-Lead contract seen at INR 175.55-INR 180.15

-Zinc contract seen at INR 272.90-INR 282.00

End

US$1 = INR 86.57

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.