More Stories

Informist, Monday, Mar. 24, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India Monday, tracking a rise in contracts on the London Metal Exchange, because of weakness in the dollar. Market sentiment was also lifted by firm demand and expectations of fresh stimulus measures from China, world's largest consumer and producer of non-ferrous metals.

At 1729 IST, the Dollar Index, which measures the strength in the greenback against a basket of six major currencies, was down 0.1% at 103.98. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, hence aiding demand.

Meanwhile, China 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.

However, gains in base metals prices were limited by concern that the reciprocal tariffs by the US, which will take effect from Apr. 2, could hurt global economic growth and lower demand for metals. "We don't expect global growth to lurch lower, but it is likely to be softer," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

For further cues, market participants await the US flash manufacturing purchasing managers' index due Monday.

COPPER prices rose to a near 10-month high on MCX last week, taking cues from the LME. This was due to tight global supplies amid trade disruptions triggered by US President Donald Trump's tariff imposition on copper imports.

"Major metals trader Mercuria warned that there is 500,000 tonnes of copper heading to the US. This compares with normal imports of around 70,000 tonnes per month. The shift in inventory (to the US) could leave the rest of the global market tight in the face of stronger demand in China," Hynes said.

At 1710 IST, on the MCX, the March futures contract of:

-–ALUMINIUM was at INR 256.40 a kg, up 0.3%

–-Copper was at INR 907.80 a kg, up 1%

–-LEAD was at INR 179.50 a kg, up 0.5% 

–-ZINC was at INR 277.50 a kg, up 0.7%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 252.30-INR 260.90

--Copper contract seen at INR 892.50-INR 918.50

--Lead contract seen at INR 176.80-INR 181.60

--Zinc contract seen at INR 272.40-INR 282.20

End

US$1 = INR 85.63

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

Edited by Nishant Maher

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.