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Informist, Wednesday, Mar. 26, 2025

By Ashutosh Pati

MUMBAI - Futures contracts of copper fell on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange Wednesday because of a firm dollar. Uncertainty around potential US tariffs on copper imports also weighed on sentiment, analysts said.

At 1752 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 104.34. A stronger dollar makes commodities such as copper, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.

The US tariffs on copper imports could be announced within several weeks, way ahead of the previous deadline, according to a Bloomberg report. 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.

Moreover, the reciprocal tariffs by the US, which will take effect from Apr. 2, could hurt global economic growth and lower demand for metals. "Copper prices on the LME have eased and US commodity exchange Comex premiums have spiked in response, as the levies could arrive well before the official 270-day deadline," Dow Jones quoted Neil Welsh, head of metals at Britannia Global Markets Ltd., as saying in a note. "President Trump's consistent desire to impose copper tariffs makes the Commerce Department's present investigation look like a mere formality," Welsh added.

However, the fall in copper prices was limited due to a decline in inventories at LME-accredited warehouses. COPPER inventories have fallen over 18% to 216,750 tonnes over the past four weeks. For further cues, market participants are waiting for the US GDP data, due Thursday, and the PCE data, due Friday.

ZINC contracts traded lower, taking cues from the LME, because of a firm dollar.

At 1753 IST, on the MCX, the March futures contract of:

-–ALUMINIUM was at INR 250.25 a kg, up 0.1%

–-Copper was at INR 902.65 a kg, down 0.9%

–-LEAD was steady at INR 179.35 a kg 

–-Zinc was at INR 273.40 a kg, down 0.9%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 245.50-INR 255.20

--Copper contract seen at INR 889.60-INR 918.90

--Lead contract seen at INR 177.20-INR 181.90

--Zinc contract seen at INR 269.00-INR 278.10

End

US$1 = INR 85.70

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

Edited by Vandana Hingorani

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