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Informist, Tuesday, May 20, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper fell on the Multi Commodity Exchange of India Tuesday, tracking a fall in contracts on the London Metal Exchange, because of a firm dollar. Market sentiment was also hurt as traders assessed mixed economic data from China and a rise in production of the metal in the country, according to analysts.

At 1858 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 100.46. A stronger dollar makes commodities such as copper, which are priced in the greenback, expensive for buyers holding other currencies, denting demand.

China's April industrial production rose 6.1% on year, beating market expectations, but growth in retail sales slowed to 5.1% in April and fixed-asset investment growth eased to 4% for Jan–Apr. "China's economy is in patchy form, according to data released on Monday, with consumption still weak and the property market struggling. Separately, official data on Tuesday from China showed copper output climbing to a monthly record in April," Kotak Securities said in a report.

COPPER inventories at warehouses registered with the Shanghai Futures Exchange surged 27,437 tonnes on week to 108,142 tonnes in the week ended Friday. "Global trade uncertainties and a cloudy outlook for major economies are weighing on base metal demand. In the US, Fed officials hinted at a potential rate hold until September, with concerns raised about trade negotiations impacting businesses," according to the report.

ALUMINIUM, ZINC, and LEAD rose on the MCX, taking cues from the LME because of a fall in stocks. Aluminium inventories at LME-accredited warehouses fell by 2,525 tonnes to 390,925 tonnes. Zinc stocks fell by 4,075 tonnes to 156,725 tonnes and lead stocks fell by 600 tonnes to 243,850 tonnes.

At 1918 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 238.10 a kg, up 0.8%

–Copper was at INR 854.65 a kg, down 0.1%

–Lead was at INR 178.15 a kg, up 0.1% 

–Zinc was at INR 259.40 a kg, up 1.1% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 232.30-INR 242.60

--Copper contract seen at INR 841.80-INR 868.70

--Lead contract seen at INR 176.00-INR 179.70

--Zinc contract seen at INR 253.00-INR 264.00

End

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

Edited by Rajeev Pai

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