India Base Metals
Up on weak dollar; copper at two-month high
This story was originally published at 18:42 IST on 2 June 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of all base metals were up on the Multi Commodity Exchange of India Monday, tracking a rise in contracts on the London Metal Exchange as the dollar index slumped amid rising trade tensions with China. At 1749 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.6% at 98.79. The dollar index fell to 98.67 earlier in the day, its lowest level since Apr. 22. A weaker dollar makes dollar-denominated commodities such as base metals cheaper for those holding other currencies, thereby aiding demand.
Trump Friday said China had "totally violated" the preliminary trade agreement with Washington. US Trade Representative Jamieson Greer said Friday "we are very concerned" with China's non-compliance with the temporary trade agreement, and US Treasury Secretary Scott Bessent said Sunday Trump would speak to China's President Xi Jinping in connection with a dispute over critical minerals.
COPPER prices rose to an over-two-month high after Trump threatened to double US import tariffs on aluminium and steel, triggering speculation that tariffs on copper could be next. "The CME copper premium for July delivery jumped to around $1,100 a tonne from $800 late last week. This reflects market speculation that copper could be next in line for US import tariffs," Dow Jones quoted Neil Welsh, head of metals at Britannia Global Markets, as saying in a note.
The gains in base metal prices were limited because of Trump's threat to double tariffs on steel and aluminium from Wednesday. "The move heightened global trade tensions, with the European Union criticizing the decision for jeopardizing ongoing negotiations," said Kotak Securities in a report. "Renewed US-China trade friction further clouded sentiment, stoking concerns over supply chains and weighing on the broader metals complex."
Market participants are waiting for the US Institute for Supply Management Manufacturing Purchasing Managers' index due later in the day for further cues.
At 1815 IST, on the MCX, the June futures contract of:
-–ALUMINIUM was at INR 236.75 a kg, up 0.1%
–-Copper was at INR 869.35 a kg, up 1%
–-LEAD was at INR 178.30 a kg, up 0.3%
–-ZINC was at INR 253.60 a kg, up 1%
Trading levels for the day on the MCX:
--Aluminium contract seen at INR 232.40-INR 240.00
--Copper contract seen at INR 853.90-INR 881.80
--Lead contract seen at INR 177.10-INR 179.50
--Zinc contract seen at INR 248.50-INR 258.10
End
US$1 = INR 85.38
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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