India Base Metals
Up on weaker dollar, concerns about trade disruption
This story was originally published at 20:04 IST on 14 February 2025
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By Sandeep Sinha
MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange because of weakness in the dollar. The positive sentiment was supported by increasing concerns about potential trade disruption, short-covering and a fall in LME stocks.
Aluminium stocks in LME warehouses declined by 4,525 tonnes to 560,000 tonnes, lead fell by 1,550 tonnes to 223,975 tonnes, and zinc stocks declined by 775 tonnes to 162,650 tonnes. Copper stocks, however, rose by 17,300 tonnes to 255,225 tonnes.
At 1925 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 106.72. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.
Base metal prices are on the rise on growing concerns about potential trade disruptions, particularly in the copper market, Kotak Securities said in a note. The prospect of additional tariffs has already created significant price volatility and a wide gap between US and global copper prices, it said.
ALUMINIUM prices rose because of short-covering of positions by traders on the domestic exchange. The positive cue was further supported by a fall in stocks at LME-accredited warehouses.
COPPER prices increased due to short-covering and the possibility of a tariff on copper imports by the US.
LEAD contracts gained as traders trimmed their short positions on the MCX.
ZINC contracts traded higher due to improved property sales in the top 25 Chinese cities.
At 1925 IST, on the MCX, the February futures contract of:
–Aluminium was at INR 258.45 a kg, up 0.7%
–Copper was at INR 874.0 a kg, up 0.7%
–Lead was at INR 178.95 a kg, up 0.3%
–Zinc was at INR 268.50 a kg, up 0.6%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 256.80-260.70
-Copper contract seen at INR 869.70-880.70
-Lead contract seen at INR 177.30-180.10
-Zinc contract seen at INR 267.50-271.30
End
US$1 = INR 86.82
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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