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Informist, Tuesday, May 27, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals fell on the Multi Commodity Exchange of India Tuesday, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. Growing risk-off sentiment and concerns about demand from China also weighed on prices, according to analysts.

At 1632 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.5% at 99.43. A stronger dollar makes commodities such as base metals, which are priced in the greenback, expensive for buyers holding other currencies, hence denting demand.

"Global economic uncertainty and heightened trade tensions weighed on investor confidence, especially ahead of key US Senate debates on President Trump's ambitious tax and spending plans. Adding to the caution, Trump's delay of a planned 50% tariff on EU imports stirred further market volatility," Kotak Securities said in a note.

On Monday, US President Donald Trump extended the deadline for imposing 50% tariffs on imports from the European Union till Jul. 9. The European Union's chief trade negotiator said the region was "fully committed" to arrive at a trade agrement with the Trump administration by Jul. 9. On Friday, Trump had threatened the Eurozone with a 50% import tariff.

However, the losses in base metal prices were restricted due to a fall in inventories at warehouses registered with the LME. COPPER inventories fell 2,575 tonnes to 162,150 tonnes and ALUMINIUM stocks fell 3,000 tonnes to 381,575 tonnes. ZINC inventories fell 2,350 tonnes to 151,150 tonnes and LEAD stocks fell 1,650 tonnes to 292,375 tonnes.

At 1648 IST, on the MCX, the May futures contract of:

–Aluminium was at INR 234.80 a kg, down 0.1%

–Copper was at INR 857.50 a kg, down 0.3%

–Lead was steady at INR 176.55 a kg 

–Zinc was at INR 257.00 a kg, down 0.5% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 230.30-INR 239.10

--Copper contract seen at INR 845.40-INR 868.80

--Lead contract seen at INR 174.20-INR 178.40

--Zinc contract seen at INR 252.60-INR 262.10

End

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

Edited by Saji George Titus

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