India Base Metals
Most fall due to firm dollar, rise in LME inventories
This story was originally published at 19:53 IST on 21 February 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. Market sentiment was further hurt by a rise in inventories at warehouses monitored by the Shanghai Futures Exchange.
At 1850 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.4% at 106.71. A stronger greenback makes dollar-denominated commodities, such as base metals, expensive for buyers holding other currencies, denting demand.
COPPER inventories at Shanghai Futures Exchange accredited warehouses rose by 29,810 tonnes on week to 260,091 tonnes in the week ended Friday. ALUMINIUM inventories rose by 34,716 tonnes on week to 232,903 tonnes and ZINC stocks rose by 17,762 tonnes to 85,265 tonnes. LEAD stocks increased by 4,159 tonnes to 48,539 tonnes in the week ended Friday.
However, further losses were restricted by optimism surrounding a potential US-China trade deal. US President Donald Trump claimed that the 'very good relationship' he has with his Chinese counterpart Xi Jinping will make it possible to have a new trade deal with China, according to various media reports. China and the US are the major consumers of non-ferrous metals.
"Some recent positive signs around US-China relations are constructive for metals and the fundamentals for copper look solid, though uncertainty remains in the short-term," Dow Jones quoted analysts at RBC Capital Markets, as saying in a note.
For further cues, market participants await the US Flash Manufacturing Purchasing Managers' Index, due later in the day.
Aluminium contracts traded in the green as the European Union agreed to ban imports of primary aluminium from Russia.
At 1905 IST, on the MCX, the February futures contract of:
–Aluminium was at INR 265.30 a kg, up 0.3%
–Copper was at INR 867.05 a kg, down 0.3%
–Lead was at INR 178.60 a kg, down 0.4%
–Zinc was at INR 270.55 a kg, down 0.4%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 260.00-INR 269.00
-Copper contract seen at INR 855.00-INR 880.00
-Lead contract seen at INR 174.00-INR 183.00
-Zinc contract seen at INR 266.00-INR 277.00
End
US$1 = INR 86.71
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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