India Base Metals
Copper rises on tariff concerns, fall in Shanghai stocks
This story was originally published at 19:47 IST on 12 March 2025
Register to read our real-time news.Informist, Wednesday, Mar. 12, 2025
By Ashutosh Pati
MUMBAI – Futures contracts of copper rose on the Multi Commodity Exchange of India and the London Metal Exchange because of concerns that US President Donald Trump may impose tariffs on copper, putting pressure on the restricted capacity of local smelters, analysts said. Market sentiment was lifted by a fall in inventories at warehouses registered with the Shanghai Futures Exchange.
"Copper cathode inventories in Shanghai and Guangdong extended declines from a peak due to fewer imports in recent months," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. COPPER inventories at Shanghai Futures Exchange-monitored warehouses fell by 961 tonnes on week to 267,376 tonnes in the week ended Friday.
However, the gains in copper prices were limited by a firm dollar. At 1711 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 103.52. A stronger greenback makes dollar-denominated commodities, such as copper, expensive for buyers holding other currencies.
For further cues, market participants were looking at the US CPI data.
ALUMINIUM contracts traded in the green amid tight supply while markets absorb fresh tariffs imposed by Trump, analysts at Motilal Oswal Financial Services said in a report. Aluminium inventories at Shanghai Futures Exchange-monitored warehouses fell by 9,729 tonnes on week to 224,802 tonnes in the week ended Friday, further supporting prices.
At 1714 IST, on the MCX, the March futures contract of:
–Aluminium was at INR 268.20 a kg, up 0.8%
–Copper was at INR 899.5 a kg, up 1.3%
–LEAD was at INR 183.75 a kg, up 0.6%
–ZINC was at INR 280.20 a kg, up 1.5%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 264.00-270.40
-Copper contract seen at INR 879.40-909.60
-Lead contract seen at INR 181.80-185.80
-Zinc contract seen at INR 273.10-283.50
End
US$1 = INR 87.20
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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