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Informist, Thursday, Mar. 20, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper were down on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. However, the fall was restricted due concerns about supply and hopes of fresh economic stimulus from China, which is the biggest consumer of copper.

Earlier in the day, the most-active March COPPER contract rose to a near 10-month high of INR 915.50 per kg on the MCX and the three-month copper contract on the LME hit a near five-month high of $10,049 per tonne. The prices surged due to tight global supplies amid trade disruptions triggered by US President Donald Trump's tariff imposition on copper imports, analysts said.

At 1703 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.5% at 103.94. A stronger dollar makes commodities such as copper, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.

"Traders are rushing copper to the US, thereby tightening the rest of the world ahead of tariffs," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note to clients.

Trump last month ordered the US Commerce Department to investigate the threat that copper imports pose to national security and suggest ways to mitigate any such threat. The mitigation efforts include "potential tariffs, export controls, or incentives to increase domestic production," the order said.

"...as the US investigation into copper imports continues – copper prices are likely to remain supported by the front-running of tariffs and tightening of the ex-US physical market as more metal makes its way to the US ahead of any potential levies," Ewa Manthey, commodities strategist at ING Economics, said in a report.

Positive economic data from China had supported copper prices earlier this week. China's industrial production rose 5.9% on year in the first two months of 2025 and retail sales rose 4% on year, according to the National Bureau of Statistics.

ALUMINIUM prices rose taking cues from the LME as inventories at LME-accredited warehouses fell by 1,600 tonnes to 487,525 tonnes.

ZINC prices traded in the red taking cues from the LME because of a firm dollar.

At 1703 IST, on the MCX, the March futures contract of:

–Aluminium was at INR 263.20 a kg, up 0.3%

–Copper was at INR 908.85 a kg, down 0.2%

–LEAD was at INR 181.15 a kg, down 0.8% 

–Zinc was at INR 275.55 a kg, down 0.1%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 260.60-INR 266.60

-Copper contract seen at INR 899.30-INR 921.70

-Lead contract seen at INR 179.30-INR 183.70

-Zinc contract seen at INR 271.00-INR 280.60

End

US$1 = INR 86.36

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

Edited by Ashish Shirke

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