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Informist, Monday, Feb. 24, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of aluminium fell on the Multi Commodity Exchange of India Monday, tracking a fall in contracts on the London Metal Exchange because of a recovery in the dollar. Market sentiment was also hurt due to speculation about the US easing sanctions on Russia, which could increase supply of the metal from the region, analysts said.

At 1835 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 106.69. A stronger greenback makes dollar-denominated commodities such as aluminium expensive for buyers holding other currencies, denting demand.

A surge in ALUMINIUM inventories at warehouses monitored by the Shanghai Futures Exchange weighed on prices of the metal. Inventories rose by 34,716 tonnes on week to 232,903 tonnes in the week ended Friday.

However, the fall was 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 biggest consumers of non-ferrous metals.

For further cues, market participants will look at US Conference Board consumer confidence data, due Tuesday. They will also monitor Beijing's upcoming National People's Congress meeting in March for potential stimulus measures.

COPPER contracts traded in the red tracking a fall on the LME because of a firm dollar and rise in production. Global production of refined copper rose around 4.2% to 27.63 million tonnes in 2024, the International Copper Study Group said in a report. Production in December rose 1.6% on month to 2.37 million tonnes, while consumption declined 2.6% on month to 2.4 million tonnes, the report said.

ZINC prices fell taking cues from LME as inventories at warehouses accredited to the exchange rose by 7,400 tonnes to 161,000 tonnes.

At 1835 IST, on the MCX, the February futures contract of:

–Aluminium was at INR 262.50 a kg, down 0.7%

–Copper was at INR 863.15 a kg, down 0.3%

–Lead was at INR 178.80 a kg, up 0.1% 

–Zinc was at INR 269.50 a kg, down 0.9%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 257.00-INR 266.70

-Copper contract seen at INR 851.90-INR 876.70

-Lead contract seen at INR 176.20-INR 181.10

-Zinc contract seen at INR 263.70-INR 273.40

End

US$1 = INR 86.69

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

Edited by Ashish Shirke

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