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Informist, Tuesday, Jun. 3, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of aluminium and lead traded in the red on the Multi Commodity Exchange of India, tracking a fall in contracts on the London Metal Exchange because of a recovery in the dollar from near-six-week lows. Market sentiment was also hit by US President Donald Trump's announcement of doubling tariffs on aluminium and steel imports from Wednesday.

At 2010 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.4% at 99.14. A stronger dollar makes dollar-denominated commodities such as aluminium and lead more expensive for those holding other currencies, denting demand.

"...metals on the LME are trading lower as renewed US tariff threats and weak Chinese manufacturing data weigh on sentiment," Kotak Securities said in a report. China's Caixin Manufacturing Purchasing Managers' Index fell to 48.3 in May, its lowest level since 2022, from 50.4 in April, signalling a contraction and, therefore, weaker demand.

However, a fall in stocks of most metals at warehouses registered with the Shanghai Futures Exchange limited the downside in base metal prices. ALUMINIUM inventories fell 16,856 tonnes to 124,433 tonnes and ZINC inventories fell 1,763 tonnes to 42,310 tonnes. LEAD stocks fell 1,928 tonnes to 46,500 tonnes, while COPPER inventories rose by 7,120 tonnes to 105,791 tonnes.

Copper prices rose after Trump threatened to double US import tariffs on aluminium and steel, triggering speculation that tariffs on copper could be next. Market participants now await China's Caixin Services Purchasing Managers' Index, due Thursday, for further cues.
 

At 2026 IST, on the MCX, the June futures contract of:

-–Aluminium was at INR 238.35 a kg, down 0.1%

–-Copper was at INR 870.80 a kg, up 0.3%

–-Lead was at INR 178.35 a kg, down 0.1% 

–-Zinc was at INR 255.05 a kg, up 0.3% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 232.90-INR 241.50

--Copper contract seen at INR 851.50-INR 879.50

--Lead contract seen at INR 176.90-INR 179.60

--Zinc contract seen at INR 249.30-INR 259.10

End

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

Edited by Rajeev Pai

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