India Base Metals
Most up as Trump hints at moderate tariffs against China
This story was originally published at 20:37 IST on 24 January 2025
Register to read our real-time news.Informist, Friday, Jan. 24, 2025
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange as US President Donald Trump expressed reluctance in imposing tariffs on China, suggesting a trade war between the two countries could be avoided. Market sentiment was also lifted by Trump's call for an immediate cut in interest rates by the US Federal Reserve.
"We have one very big power over China, and that's tariffs, and they don't want them," Bloomberg quoted Donald Trump as saying in an interview. "And I'd rather not have to use them. But it's a tremendous power over China," Trump said.
"This statement alleviated immediate trade concerns and triggered a dollar sell-off. Five of the six major metals traded in London saw gains in the final session of the week, with copper poised for its third consecutive weekly increase," Kotak Securities said in a note.
Moreover, the US president, while addressing the World Economic Forum at Davos, Switzerland, Thursday said that energy prices are going down, and he would demand an 'immediate' cut in interest rates. Lower interest rates bode well for demand for copper as they lower costs for business.
Base metal prices were also supported by a weaker dollar. At 1944 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was down 0.4% at 107.72. A weaker greenback makes dollar-denominated commodities such as base metals cheaper for buyers holding other currencies, aiding demand.
At 1946 IST, on the MCX, the January futures contract of:
–ALUMINIUM was at INR 253.70 a kg, up 0.5%
–COPPER was at INR 841.40 a kg, up 1%
–LEAD was at INR 177.85 a kg, up 0.2%
–ZINC was at INR 270.20 a kg, down 0.2%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 249.90-INR 258.20
-Copper contract seen at INR 828.50-INR 853.70
-Lead contract seen at INR 175.50-INR 179.90
-Zinc contract seen at INR 266.90-INR 277.30
End
US$1 = INR 86.20
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nishant Maher
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