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Informist, Friday, Apr. 25, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. Market sentiment was also hurt due to concerns over demand amid the ongoing trade war between the US and China, analysts said.

At 1938 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.4% at 99.66. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, hence denting demand.

Dow Jones reported on Thursday that US President Donald Trump said that US officials met their Chinese counterparts, but declined to elaborate further. Meanwhile, China downplayed hopes of an imminent rapprochement, saying it hasn't held talks with the US, "let alone reached an agreement", it said.

However, the downside in prices of base metals was restricted by a sharp drop in inventories at warehouses registered with the Shanghai Futures Exchange. ALUMINIUM inventories fell by 11,871 tonnes on week to 178,597 tonnes in the week ended Friday and COPPER inventories fell by 54,858 tonnes on week to 116,753 tonnes. LEAD stocks declined by 11,406 tonnes to 45,654 tonnes and ZINC inventories fell by 7,207 tonnes on week to 51,378 tonnes.

"Copper also dipped as a resurging dollar and lingering demand concerns outweighed optimism over potential easing US-China trade tensions. While China is considering suspending steep tariffs on select US imports, including medical equipment and industrial chemicals, the US signaled the current tariff structure may not be sustainable, offering some relief to metals markets," Kotak Securities said in a report.

Copper prices were further pressured as the latest data from the International Copper Study Group showed the global refined copper market was a surplus of 150,000 tonnes in the first two months of 2025.

Market participants await China's official Manufacturing Purchasing Managers' Index and the Caixin Manufacturing PMI, both due Wednesday for further cues. 

At 1955 IST, on the MCX, the April futures contract of:

–Aluminium was at INR 233.30 a kg, down 0.6%

–Copper was at INR 848.55 a kg, down 0.7%

–Lead was at INR 177.50 a kg, up 1.3% 

–Zinc was at INR 251.50 a kg, down 0.9%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 230.60-INR 238.50

--Copper contract seen at INR 831.80-INR 864.00

--Lead contract seen at INR 173.60-INR 179.40

--Zinc contract seen at INR 246.70-INR 257.60

End

US$1 = INR 85.45

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

Edited by Deepshikha Bhardwaj

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