More Stories

Informist, Wednesday, May 7, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper and aluminium on the Multi Commodity Exchange of India and the London Metal Exchange traded in the red on Wednesday as traders remained cautious ahead of the US Federal Reserve's policy decision later in the day. While the Federal Reserve is widely expected to keep the benchmark rate unchanged at 4.25-4.5%, market participants await Fed Chair Jerome Powell's speech.

Manufacturing purchasing managers' indices from major economies, including China, US, and EU showed contractionary activity in manufacturing hubs, which dampens the outlook on demand for base metals, Motilal Oswal Financial Services said in a report. China's Purchasing Managers' Index showed that manufacturing activity in the country contracted in April. China's Purchasing Managers' Index fell to 49.0 in April from 50.5 in March, lower than the consensus estimate. A reading below 50 indicates contraction in the sector.

However, the fall in prices was limited by a drop in inventories at LME-accredited warehouses. COPPER stocks fell by 1,650 tonnes to 193,975 tonnes and ALUMINIUM inventories fell by 4,000 tonnes to 407,575 tonnes. 

Further, "President Trump suggested his administration could strike deals as soon as this week. Scott Bessent, the Secretary of the Treasury, said overnight that some very good offers have been made to the US in negotiations and suggested deals were imminent," Daniel Hynes, senior commdity strategist at ANZ Research, said in a note. "This should ease concerns of weaker economic growth that have been hanging over the metal markets and the broader commodity complex," Hynes added.

At 2006 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 229.20 a kg, down 1.2%

–Copper was at INR 846.00 a kg, down 0.6%

–LEAD was at INR 176.40 a kg, up 0.3% 

–ZINC was at INR 247.55 a kg, up 0.3%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 227.00-INR 233.20

--Copper contract seen at INR 837.00-INR 858.00

--Lead contract seen at INR 174.30-INR 178.80

--Zinc contract seen at INR 244.00-INR 251.00

End

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

Edited by Avishek Dutta

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.