India Base Metals
Copper up on signs of improving demand, supply concerns
This story was originally published at 18:50 IST on 19 February 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of copper traded in the green on the Multi Commodity Exchange of India and the London Metal Exchange Wednesday amid signs of improving demand and concerns about supply, analysts said. Market sentiment was also lifted by positive economic data from the top consumer, China.
Broken Hill Proprietary, a leading mining company, sees improving demand for copper in China amid signs of economic recovery in the country, according to various media reports. China's retail sales rose 3.7% on year in December and industrial production surged 6.2% on year during the month, data released by China's National Bureau of Statistics showed.
Copper prices were also supported as Glencore, another mining giant, will close unprofitable smelters and will not add copper in an oversupplied market, Alastair Munro, senior base metals strategist at London-based brokerage Marex said in a note.
However, further gains in copper prices were capped by strength in the dollar and a rise in inventories at warehouses registered with the LME. COPPER stocks rose by 7,125 tonnes to 270,900 tonnes.
At 1804 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 107.19. A stronger greenback makes dollar-denominated commodities such as copper expensive for buyers holding other currencies, denting demand. Market participants await the minutes of the Federal Open Market Committee's January meeting for further cues on the interest-rate trajectory in the US.
ALUMINIUM prices rose, taking cues from the LME as inventories at LME-accredited warehouses declined by 4,000 tonnes to 547,950 tonnes.
ZINC contracts traded in the red, taking cues from the LME because of a firm dollar.
At 1817 IST, on the MCX, the February futures contract of:
–Aluminium was at INR 264.05 a kg, up 0.8%
–Copper was at INR 871.50 a kg, up 0.4%
–Lead was steady at INR 179.75 a kg
–Zinc was at INR 269.85 a kg, down 0.1%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 257.55-INR 265.25
-Copper contract seen at INR 852.00-INR 878.00
-Lead contract seen at INR 178.35-INR 181.35
-Zinc contract seen at INR 264.65-INR 273.25
End
US$1 = INR 86.95
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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