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Informist, Monday, May. 5, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India rose on Monday due to optimism about global trade, according to analysts. A fall in the dollar index also lifted market sentiment for metals. Futures of base metals may trade in a tight range for the rest of the day as the London Metal Exchange is shut on account of Early May Bank Holiday.

At 1822 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was down 0.4% at 99.54. A weak dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, hence aiding demand.

"While US-China trade talks remain uncertain, hopes for reduced tariffs and potential deals with other major economies, alongside robust US jobs data, lifted sentiment and reinforced demand expectations for industrial metals," Kotak Securities said in a report.

Data released on Friday showed the US labor market remained resilient amid President Trump's trade policies. Non-farm payrolls rose by 177,000 in April, higher than the estimate of 130,000 in a Reuters poll, according to data released on Friday.

A drop in inventories of most metals at warehouses registered with the Shanghai Futures Exchange also supported prices. ALUMINIUM inventories fell by 2,740 tonnes on week to 175,857 tonnes and COPPER inventories fell by 27,446 tonnes on week to 89,307 tonnes. ZINC stocks declined by 2,901 tonnes to 48,477 tonnes. LEAD inventories, however, rose by 1132 tonnes to 46,786 tonnes.

For further cues, market participants await a decision by the US Federal Open Market Committee early on Thursday.

At 1848 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 233.20 a kg, up 0.2%

–Copper was at INR 846.45 a kg, up 0.6%

–Lead was at INR 176.80 a kg, up 0.1% 

–Zinc was at INR 246.94 a kg, up 0.4%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 228.10-INR 237.10

--Copper contract seen at INR 828.50-INR 854.30

--Lead contract seen at INR 174.70-INR 177.80

--Zinc contract seen at INR 240.90-INR 248.10

End

US$1 = INR 84.25

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

Edited by Avishek Dutta

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