India Base Metals
All up on fall in LME inventories; US PCE data eyed
This story was originally published at 18:30 IST on 27 February 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of all the base metals were up on the Multi Commodity Exchange of India and the London Metal Exchange Thursday because of a fall in inventories at warehouses registered with the LME. Market participants were also cautious ahead of the US personal consumption expenditures data to be released Friday.
ALUMINIUM inventories at LME-accredited warehouses fell by 4,050 tonnes to 525,425 tonnes and COPPER inventories fell by 1,375 tonnes to 263,650 tonnes. ZINC stocks fell by 425 tonnes to 164,950 tonnes and LEAD inventories declined by 1,600 tonnes to 216,350 tonnes.
However, the upside in base metals prices was restricted by a firm dollar. At 1717 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 106.62. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.
Meanwhile, China has urged the US to halt an investigation into potential new tariffs on copper imports and vowed to retaliate if Chinese entities got caught up in the levies, according to a Reuters report. A trade war between two of the world's largest economies could hurt demand for non-ferrous metals. "Tariffs are fundamentally bearish for copper and other base metals as they slow global growth and risk keeping inflation higher for longer," Dow Jones quoted analysts at MUFG as saying in a note.
Market participants will monitor Beijing's upcoming National People's Congress meeting in March for potential stimulus measures.
At 1718 IST, on the MCX, the March futures contract of:
–Aluminium was at INR 259.55 a kg, up 0.6%
–Copper was at INR 865.30 a kg, up 0.1%
–Lead was at INR 180.40 a kg, up 0.2%
–Zinc was at INR 269.25 a kg, up 0.4%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 254.90-INR 264.60
-Copper contract seen at INR 852.10-INR 879.00
-Lead contract seen at INR 178.70-INR 181.70
-Zinc contract seen at INR 265.00-INR 274.20
End
US$1 = INR 87.20
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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