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Informist, Friday, May 16, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper fell on the Multi Commodity Exchange of India and the London Metal Exchange as inventories at Shanghai Futures Exchange-monitored warehouses rose sharply for the first time since March. Market sentiment was also hurt as optimism around the US-China trade deal seems to fade, according to analysts.

COPPER stocks rose by 27,437 tonnes on week to 108,142 tonnes in the week ended Friday, breaking a multi-week streak of inventory drawdowns. "Despite a volatile week, copper is on track to post a modest weekly gain, following the temporary US-China tariff truce has provided some support, but the lack of a long-term deal continues to cloud the global outlook," Kotak Securities said in a report.

The US and China Monday agreed to lower tariffs for 90 days. 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%.

The global copper market is expected to be in a surplus of 289,000 tonnes this year and about 209,000 tonnes in 2026, according to the International Copper Study Group, adding further headwinds. It had earlier expected a surplus of 194,000 tonnes in 2025.

ALUMINIUM and ZINC contracts were down on the MCX, while LEAD was up.  

Market participants are waiting for China's industrial production data and retail sales data for further cues.

At 1856 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 239.65 a kg, down 0.6%

–Copper was at INR 854.90 a kg, down 0.9%

–Lead was at INR 178.80 a kg, up 0.1% 

–Zinc was at INR 258.15 a kg, down 0.4% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 232.50-INR 243.90

--Copper contract seen at INR 840.40-INR 870.10

--Lead contract seen at INR 176.70-INR 180.50

--Zinc contract seen at INR 250.70-INR 263.70

End

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

Edited by Saji George Titus

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