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Informist, Thursday, Apr. 17, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals edged lower on the Multi Commodity Exchange of India on Thursday, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. Market sentiment was further hurt due to concerns about demand amid escalating trade tensions between the US and China.

At 1917 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 99.43. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, hence denting demand.

The US announced that China now faces up to 245% tariff on exports to the US as a result of Beijing's retaliation on reciprocal tariffs imposed by President Donald Trump to address "unfair trade practices". China and the US are the major consumers of non-ferrous metals.

However, the fall in base metal prices was cushioned by positive economic data from China. The country's GDP expanded 5.4% on year in the first quarter of the year, according to data from the National Bureau of Statistics. Analysts polled by Reuters had expected the GDP to expand 5.1% on year. Further, industrial production in China rose 7.7% on year in March, surpassing market expectations of a growth of 5.9%.

"While the tariff shock is bearish for copper over the next 3–6 months, price declines have been cushioned by strong Chinese dip buying and tight scrap supply. Still, physical copper demand and manufacturing activity may weaken further due to existing tariffs, though any potential concessions could slow the pace of decline," SMC Global Securities said in a report.

ZINC prices fell taking cues from the LME as inventories at warehouses registered with the LME rose by 4,800 tonnes to 195,350 tonnes.

At 1918 IST, on the MCX, the April futures contract of:

-–ALUMINIUM was at INR 231.15 a kg, down 0.4%

–-COPPER was at INR 838.00 a kg, down 0.7%

–-LEAD was at INR 176.90 a kg, down 0.3%

–-Zinc was at INR 247.00 a kg, down 0.1%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 226.40-INR 236.10

--Copper contract seen at INR 814.20-INR 859.70

--Lead contract seen at INR 174.90-INR 178.90

--Zinc contract seen at INR 239.20-INR 252.30

End

US$1 = INR 85.37

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

Edited by Ashish Shirke

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