India Base Metals
All rise on weakness in dollar, China's growth target
This story was originally published at 17:42 IST on 5 March 2025
Register to read our real-time news.Informist, Wednesday, Mar. 5, 2025
By Ashutosh Pati
MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India on Wednesday, tracking a rise in contracts on the London Metal Exchange as the dollar declined to a near four-month low. Market sentiment was also lifted as China set its 2025 GDP growth target at around 5%, analysts said.
At 1618 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was down 0.4% at 105.07. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, aiding demand.
China has set its GDP growth target at around 5% for 2025 and lowered its inflation expectations to 2%. Beijing will increase the intensity of fiscal spending and adopt more proactive, sustainable, robust, and effective fiscal policies in 2025, China's finance ministry was quoted as saying by various media reports. China is the top producer and consumer of non-ferrous metals, and a growth in its economy can boost demand for the metals.
A fall in inventories at LME-accredited warehouses also supported prices. ALUMINIUM inventories fell by 4,625 tonnes to 519,875 tonnes and COPPER inventories fell by 850 tonnes to 260,150 tonnes. LEAD stocks declined by 3,075 tonnes to 208,400 tonnes and ZINC inventories fell by 625 tonnes to 161,325 tonnes.
For further cues, market participants await the US Automatic Data Processing non-farm employment data due later in the day. They will also keep an eye on Beijing's National People's Congress meeting, which began Wednesday, for potential stimulus measures.
At 1634 IST, on the MCX, the March futures contract of:
–Aluminium was at INR 260.20 a kg, up 0.6%
–Copper was at INR 877.60 a kg, up 1.8%
–Lead was at INR 180.75 a kg, up 0.2%
–Zinc was at INR 271.40 a kg, up 1.1%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 256.50-INR 263.10
-Copper contract seen at INR 862.60-INR 889.80
-Lead contract seen at INR 179.70-INR 182.50
-Zinc contract seen at INR 266.70-INR 276.10
End
US$1 = INR 86.95
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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