More Stories

Informist, Friday, Apr. 4, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals slumped Friday on the Multi Commodity Exchange of India and the London Metal Exchange due to an escalation in trade tensions after China retaliated with its own tariffs on imports from the US. Market participants remain worried that a potential trade war could derail global economic growth and hurt demand for metals.

In retalation to the reciprocal tariffs announced by US President Donald Trump, China's Finance Ministry Friday said it will impose 34% tariffs on all goods imported from the US, with effect from Thursday. "China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner," CNBC reported, quoting China's Finace Ministry.

Trump early Thursday announced reciprocal tariffs on more than 60 countries and territories, with substantially higher levies on key trading partners such as China, the European Union, and Vietnam. Trump slapped 34% tariff on China, 46% levy on Vietnam, and 32% tariff on Taiwan. The new reciprocal rate on China adds to the existing tariffs totalling 20%, bringing the tariff rate on Beijing to 54%.

"Although all base and precious metals, including gold, were exempted from the new levies, concerns about the latest tariffs hurting demand for raw materials is weighing on sentiment. A global trade war is bearish for copper and other industrial metals in the context of slowing global growth," analysts at ING Economics said in a 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 ongoing investigation around copper imports suggests that tariffs on the metal could be announced in the near future.

COPPER prices on the LME fell to an eight-month low of $8,751 per tonne earlier in the day. On the MCX, prices fell to a three-month low of INR 814.3 per kg. "We expect that copper will continue to act as the main driver for the overall momentum in metals complex," analysts at Sucden Financial said in a report.

For further cues, market participants are waiting for a speech by US Federal Reserve Chair Jerome Powell later in the day.

At 1855 IST, on the MCX, the April futures contract of:

-–ALUMINIUM was at INR 233.30 a kg, down 2.2%

–-Copper was at INR 819.50 a kg, down 5.4%

–-LEAD was at INR 176.40 a kg, down 1%

–-ZINC was at INR 253.00 a kg, down 2%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 231.00-INR 240.70

--Copper contract seen at INR 807.00-INR 864.50

--Lead contract seen at INR 173.40-INR 179.00

--Zinc contract seen at INR 248.70-INR 260.50

End

US$1 = INR 85.23

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

Edited by Deepshikha Bhardwaj

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.