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Informist, Monday, Mar. 10, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of COPPER fell on the Multi Commodity Exchange of India and the London Metal Exchange Monday due to weaker-than-expected economic data from China and the US. Market sentiment was further hit due to weakness in the Chinese yuan against the dollar.

China's consumer price index was down 0.7% on year in February due to the effects of the Spring Festival holiday and fluctuations in global commodity prices, according to China's National Bureau of Statistics. On a monthly basis, the CPI dropped 0.2% last month. The reading fell short of projections of an annualised drop of 0.5% in a Reuters poll of economists. Additionally, the producer price index in China fell in February, slipping 2.2% on year, against the fall of 2.3% in January.

A weaker yuan against the dollar also weighed on the sentiment as it makes dollar-denominated copper expensive for Chinese buyers. The country is the biggest producer and consumer of base metals.

Data released by the US Bureau of Labor Statistics on Friday showed US non-farm payrolls increased by 151,000 in February, after the 125,000 increase reported in January. This figure was weaker than the market expectation of 160,000.

However, the fall in copper prices was limited due to expectation of stimulus measures by Beijing to meet the GDP growth target of around 5% this year. "Calls for such measures intensified after China's consumer inflation declined by a more than expected 0.7% y/y in February," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

For further cues, market participants await the US job opening and labor turnover survey data, due Tuesday.

ALUMINIUM contracts traded in the green due to a fall in stocks at warehouses registered with the Shanghai Futures Exchange. Aluminium inventories fell by 9,729 tonnes on week to 224,802 tonnes in the week ended Friday. 

At 1610 IST, on the MCX, the March futures contract of:

–Aluminium was at INR 265.05 a kg, up 0.2%

–Copper was at INR 878.35 a kg, down 0.4%

–LEAD was at INR 182.40 a kg, up 0.9% 

–ZINC was at INR 271.95 a kg, down 0.4%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 261.30-268.30

-Copper contract seen at INR 865.00-895.00

-Lead contract seen at INR 179.65-183.25

-Zinc contract seen at INR 268.40-277.60

End

US$1 = INR 87.33

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

Edited by Vandana Hingorani

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