India Base Metals
Most up on weak dollar, easing US-China trade tensions
This story was originally published at 20:06 IST on 2 May 2025
Register to read our real-time news.Informist, Friday, May. 2, 2025
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India Friday, tracking a rise in contracts on the London Metal Exchange because of a weak dollar. Market sentiment was also lifted by the reported easing of US-China trade tensions, analysts said.
At 1802 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.4% at 99.79. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, hence aiding demand.
China's commerce ministry said it was evaluating a proposal by the US to begin trade talks. Beijing said the US recently sent messages to start the talks. On Thursday, Trump said the US had reached "potential" trade deals with India, Japan, and South Korea. He said there was a "very good chance" of securing a deal with China.
"The rebound came amid signs of thawing US-China trade tensions, as both sides indicated willingness to engage in tariff talks. Sentiment was further supported by President Trump's remarks on potential trade deals with key Asian partners," Kotak Securities said in a report.
COPPER prices got some support due to supply-side issues. "Two of Peru's biggest copper mines were disrupted by community protests this week. At Antamina, owners BHP and Glencore quelled the disruption relatively quickly. At Las Bambas, owned by China's MMG, however, the mine's transportation services were disrupted," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.
"Despite the late-week rebound, copper prices could remain under pressure due to disappointing US economic data and subdued manufacturing activity in China," the report said.
China's Purchasing Managers' Index showed that manufacturing activity in the country contracted in April. The index fell to 49.0 in April from 50.5 in March, and was lower than consensus estimates. A reading below 50 indicates a contraction in economic activity.
At 1812 IST, on the MCX, the May futures contract of:
–ALUMINIUM was at INR 232.00 a kg, up 0.5%
–Copper was at INR 842.70 a kg, up 1.4%
–LEAD was steady at INR 177.10 a kg
–ZINC was at INR 246.25 a kg, up 0.8%
Trading levels for the day on the MCX:
--Aluminium contract seen at INR 228.10-INR 237.60
--Copper contract seen at INR 821.10-INR 858.50
--Lead contract seen at INR 175.30-INR 178.60
--Zinc contract seen at INR 240.70-INR 251.10
End
US$1 = INR 84.58
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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.
To read more please subscribe
Share this Story:
