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Informist, Tuesday, May 13, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all the base metals 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. Market sentiment was also lifted after the US and China announced a trade deal, lowering tariffs for 90 days.

At 1939 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 101.43. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, hence aiding demand.

The US and China Monday agreed to suspend most of the tariffs on goods imported from each other for 90 days, effective Wednesday, according to a joint statement released by the White House. The US reduced its reciprocal tariff on Chinese goods to 10% from 125%. With the 20% tariffs announced in February and March against Chinese goods remaining in place, the total tariff against Chinese goods will now be 30%. At the same time, China agreed to cut tariffs on US goods to 10% from 125%.

"Copper rose with most other industrial metals following the announcement that there would be a 90-day reprieve in the US-China trade war," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. "...sentiment was boosted by signs of stronger-than-expected demand in China," Hynes added. Refined copper imports in April remained elevated, while copper concentrate imports rose by 25% on year to 2.9 million tonnes. Total copper imports rose by 13% on year. This is being led by strong domestic demand, he said.

For further cues, investors are waiting for the US core producer price index on Thursday.

At 1953 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 239.25 a kg, up 0.8%

–Copper was at INR 859.15 a kg, up 0.9%

–Lead was at INR 178.50 a kg, up 0.4% 

–Zinc was at INR 254.20 a kg, up 0.8% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 234.30-INR 245.10

--Copper contract seen at INR 842.50-INR 871.90

--Lead contract seen at INR 176.60-INR 180.40

--Zinc contract seen at INR 248.20-INR 259.10

End

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

Edited by Ashish Shirke

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