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Informist, Tuesday, May 6, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper and zinc rose on the Multi Commodity Exchange of India on Tuesday, tracking a rise in contracts on the London Metal Exchange, because of a weak dollar. Fall in inventories at warehouses registered with the LME and the Shanghai Futures Exchange also lifted market sentiment.

At 1740 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was down 0.2% at 99.56. A weak dollar makes commodities such as copper -- priced in the greenback -- cheaper for buyers holding other currencies, hence aiding demand.

"Copper is trading higher as the Shanghai Futures Exchange reopens after a holiday, with returning investors re-establishing positions with renewed buying interest into an already tight market," Neil Welsh, head of metals at Britannia Global Markets, was quoted as saying by Dow Jones. "Inventories in Shanghai and LME warehouses are being drawn down, which could further tighten supplies," Welsh added.

COPPER inventories at warehouses registered with the Shanghai Futures Exchange fell by 27,446 tonnes on week to 89,307 tonnes. Inventories at LME-accredited warehouses fell by 1,675 tonnes to 195,625 tonnes.

Market participants are waiting for the interest rate decision of the US Federal Open Market Committee early Thursday for further cues.

ZINC prices rose taking cues from the LME because of a weak dollar. Fall in zinc inventories at LME-accredited warehouses by 875 tonnes to 172,925 tonnes also supported prices. Stocks at Shanghai Futures Exchange accredited warehouses also fell by 2,901 tonnes to 48,477 tonnes.

At 1752 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 231.70 a kg, down 0.3%

–Copper was at INR 847.15 a kg, up 0.6%

–Lead was at INR 176.25 a kg, down 0.4% 

–Zinc was at INR 246.50 a kg, up 0.3%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 229.10-INR 236.90

--Copper contract seen at INR 830.00-INR 863.00

--Lead contract seen at INR 175.20-INR 178.20

--Zinc contract seen at INR 243.35-INR 253.25

End

US$1 = INR 84.43

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

Edited by Nishant Maher

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