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Informist, Monday, Mar. 3, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India Monday, tracking a rise in contracts on the London Metal Exchange as the dollar retreated from a near three-week high it hit Friday. Market sentiment was also boosted by better-than-expected economic data from China.

At 1601 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 107.01. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, aiding demand.

China's official manufacturing purchasing managers' index rose to 50.2 in February from 49.1 a month before, beating the market forecast of 49.9. In addition, the Caixin China manufacturing PMI rose to a three-month high of 50.8 in February from 50.1 the previous month. A reading below 50 indicates a contraction in economic activity, and a number above 50 signals an expansion. China is the top producer and consumer of non-ferrous metals, and positive economic data can boost demand for metals.

A fall in inventories of the metals at warehouses registered with the LME also supported prices. ALUMINIUM inventories fell by 4,050 tonnes to 517,150 tonnes, and COPPER inventories fell 1,025 tonnes to 261,050 tonnes. LEAD stocks declined by 2,150 tonnes to 212,650 tonnes, and ZINC inventories fell by 828 tonnes to 163,597 tonnes.

However, concerns about a global trade war amid US President Donald Trump's tariff policies and ample stocks in China capped further upside in base metals prices. For further cues, market participants will await the US Institute for Supply Management's manufacturing purchasing managers' index due later in the day. They will also monitor Beijing's upcoming National People's Congress meeting on Wednesday for potential stimulus measures.

At 1603 IST, on the MCX, the March futures contract of:

–Aluminium was at INR 258.15 a kg, up 0.4%

–Copper was at INR 862.65 a kg, up 0.1%

–Lead was steady at INR 180.40 a kg 

–Zinc was at INR 268.95 a kg, up 0.8%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 254.15-INR 261.75

-Copper contract seen at INR 853.00-INR 876.00

-Lead contract seen at INR 179.20-INR 182.10

-Zinc contract seen at INR 264.45-INR 273.05

End

US$1 = INR 87.37

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

Edited by Saji George Titus

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