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Informist, Wednesday, Jun. 11, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of aluminium and zinc rose on the Multi Commodity Exchange of India and the London Metal Exchange Wednesday as a breakthrough in ongoing trade talks between the US and China lifted sentiment. Market participants are waiting for the US consumer price index inflation later in the day for further cues about the interest rate trajectory in the country.

Officials from the US and China arrived at a consensus on restoring their trade agreement and addressing China's restrictions on export of rare earth minerals. US Commerce Secretary Howard Lutnick informed reporters in London that the framework added "meat on the bones" to the agreement reached in Geneva last month to alleviate retaliatory tariffs and China's restrictions on exports of essential minerals. The agreement would also eliminate certain recent US export limitations, he said.

"We have reached a framework to implement the Geneva consensus and the call between the two presidents," Lutnick said. "The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework." He indicated US restrictions on sales of advanced technology to China in recent weeks would be rolled back as Beijing approves rare earth exports.

"A preliminary framework to ease trade tensions and resolve key export restrictions, including rare earths, lifted market sentiment. Aluminium led the gains, hitting a near one-month high amid tightening LME supplies and hopes of improved demand," Kotak Securities said in a report. However, traders remain cautious as they are waiting for a final approval of the agreement from both the presidents.

COPPER and LEAD prices fell on MCX and LME because of weak economic data from China. China's CPI inflation was down 0.1% on year in May. On a monthly basis, the CPI for May dipped 0.2%, according to the National Bureau of Statistics. China is the top producer and consumer of non-ferrous metals and subdued demand from the country is bearish for prices of metals.

At 1636 IST, on the MCX, the June futures contract of:

-–ALUMINIUM was at INR 242.25 a kg, up 0.7%

–-Copper was at INR 869.75 a kg, down 1.1%

–-Lead was at INR 178.70 a kg, down 0.1% 

–-ZINC was at INR 253.00 a kg, up 0.3% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 238.00-INR 246.10

--Copper contract seen at INR 856.20-INR 884.00

--Lead contract seen at INR 177.30-INR 180.20

--Zinc contract seen at INR 248.90-INR 257.30

End

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

Edited by Nishant Maher

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