India Base Metals
Most fall on firm dollar, global trade war fears
This story was originally published at 16:41 IST on 13 March 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of most base metals were down on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. Market sentiment was further hit by the risk of a global trade war potentially derailing global economic growth.
At 1613 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 103.73. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.
Meanwhile, US President Donald Trump threatened to impose additional penalties on the European Union if the bloc imposed counter-tariffs on US goods. Canada on Wednesday said it would impose 25% reciprocal tariffs on steel products and other products from the US, and the EU will raise tariffs on American beef, poultry, bourbon, motorcycles, and several other products.
"...market fears that tit for tat approach increased the risk of broader global trade war, which may have adverse effect on economic growth denting demand for industrial metal," ICICI Direct said in a report.
However, softer-than-expected consumer inflation data from the US restricted the fall in base metals prices. The US consumer price index rose 2.8% on year in February, lower than 3.0% in January, according to data released by the US Bureau of Labor Statistics on Wednesday. The index was lower than analysts' expectation of 2.9%.
For further cues, market participants are waiting for the US producer price index for February that will be detailed later in the day.
At 1617 IST, on the MCX, the March futures contract of:
–ALUMINIUM was at INR 264.25 a kg, down 0.9%
–COPPER was at INR 895.75 a kg, down 0.3%
–LEAD was steady at INR 183.50 a kg
–ZINC was at INR 277.40 a kg, down 0.2%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 262.90-INR 269.00
-Copper contract seen at INR 884.00-INR 911.00
-Lead contract seen at INR 182.05-INR 185.45
-Zinc contract seen at INR 272.45-INR 282.35
End
US$1 = INR 86.99
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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