India Base Metals
Up as rupee sinks; aluminium up as US removes tariff on UK
This story was originally published at 21:51 IST on 8 May 2025
Register to read our real-time news.Informist, Thursday, May 8, 2025
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange, despite negative cues from the London Metal Exchange, because of a sharp fall in the rupee against the dollar. The rupee fell 1% against the dollar and ended at 85.71 on Thursday, falling the most in over two years as tension between India and Pakistan escalated.
ALUMINIUM contracts rose on the MCX and the LME as the US removed tariffs on steel and aluminium imports from the UK.
However, prices of COPPER and LEAD fell on LME because of a firm dollar. At 2040 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 100.17. A strong dollar makes commodities such as copper -- priced in the greenback -- expensive for buyers holding other currencies, hence denting demand.
Market sentiment was also weighed down after the US Federal Reserve's decision to keep interest rates steady at 4.25-4.50% for the third straight meeting.
US Fed Chair Jerome Powell said during his post-decision press conference that if the "large increases in tariffs" that have been announced remain at their current levels, it could lead to a slowdown in economic growth, an uptick in long-term inflation, and an increase in unemployment.
Market participants await China's trade balance data due Friday for further cues.
At 2054 IST, on the MCX, the May futures contract of:
–Aluminium was at INR 232.80 a kg, up 1.8%
–Copper was at INR 850.35 a kg, up 0.5%
–LEAD was at INR 177.65 a kg, up 0.1%
–ZINC was at INR 248.55 a kg, up 0.8%
Trading levels for the day on the MCX:
--Aluminium contract seen at INR 228.00-INR 235.00
--Copper contract seen at INR 840.00-INR 861.00
--Lead contract seen at INR 175.20-INR 179.80
--Zinc contract seen at INR 244.00-INR 251.00
End
US$1 = INR 85.71
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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