India Base Metals
Down on strength in dollar, rise in Shanghai inventories
This story was originally published at 18:42 IST on 21 March 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of all base metals were down on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange because of continued strength in the dollar. Market sentiment was also hurt by a rise in inventories of most metals at warehouses monitored by the Shanghai Futures Exchange.
At 1714 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 103.91. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.
ALUMINIUM inventories at Shanghai Futures Exchange monitored warehouses surged by 15,159 tonnes to 233,240 tonnes and COPPER inventories rose by 856 tonnes to 256,328 tonnes. LEAD stocks rose by 1,956 tonnes to 67,437 tonnes. ZINC inventories, however, declined by 5,474 tonnes to 17,886 tonnes.
Meanwhile, China, the top producer and consumer of non-ferrous metals, is planning to bolster its strategic reserves of key industrial metals, including copper, to enhance supply security amid rising energy-transition demand and geopolitical tensions, according to various media reports.
Market participants are waiting for a speech by US Federal Open Market Committee member John C. Williams later in the day for further cues on the US interest rate trajectory.
On Thursday, copper contracts on the LME surged past the psychologically significant level of $10,000 per tonne for the first time in nearly five months, albeit briefly, due to tight global supplies amid trade disruptions triggered by US President Donald Trump's tariff imposition on copper imports. "...Trump's order to investigate copper imports has driven US prices to record premiums over LME contracts, prompting traders to rush shipments ahead of possible duties. This has tightened global supply, adding to market volatility amid ongoing trade tensions," analysts at Kotak Securities said in a report.
At 1720 IST, on the MCX, the March futures contract of:
–Aluminium was at INR 258.90 a kg, down 1%
–Copper was at INR 899.30 a kg, down 0.9%
–Lead was at INR 178.45 a kg, down 0.5%
–Zinc was at INR 273.35 a kg, down 0.7%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 256.50-INR 263.10
-Copper contract seen at INR 887.10-INR 911.30
-Lead contract seen at INR 175.60-INR 180.80
-Zinc contract seen at INR 268.40-INR 278.50
End
US$1 = INR 85.97
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subhojit Sarkar
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