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Informist, Thursday, Jun. 12, 2025

By Ashutosh Pati

MUMBAI – The futures contract of copper on the Multi Commodity Exchange of India rose, tracking a rise in contracts on the London Metal Exchange as the dollar slumped to a near-two-month low. Market sentiment was also lifted by positive signals from the trade talks between the US and China in London.

At 1914 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.8% at 97.81. A weaker dollar makes dollar-denominated commodities such as copper cheaper for those holding other currencies, aiding demand.

Market participants assessed a US-China trade deal that includes China removing its restrictions on rare earth mineral exports and the US bringing its reciprocal tariff on China to 55% from 145%. "We made a great deal with China. We're very happy with it," US President Donald Trump said. "We have everything we need, and we're going to do very well with it. And hopefully, they are too." The final deal, however, is subject to approval by Trump and China's President Xi Jinping.

Wednesday, Trump said he was willing to extend a Jul. 8 deadline to complete trade negotiations with other countries before US reciprocal tariffs come into effect but said he did not believe this would be necessary. However, the gains in copper prices were limited "...amid persistent demand concerns from China and renewed trade uncertainty after President Trump hinted at possible unilateral tariffs", Kotak Securities said in a report.

COPPER prices have risen around 10% this year despite concerns about demand due to tightening supply. "That said, softening Chinese economic indicators point to a widening divergence between domestic and international market dynamics. Copper prices are likely to stay supported for now if LME stock withdrawals continue, but if US tariffs on copper are introduced this will likely suppress prices," ING analysts were quoted by Dow Jones as saying. "The wave of copper flooding to the US will be stymied and consumers will likely work through their inventories instead."

At 1920 IST, on the MCX, the June futures contract of:

-–ALUMINIUM was at INR 241.75 a kg, down 0.3%

–-Copper was at INR 874.50 a kg, up 0.4%

–-LEAD was at INR 179.60 a kg, up 0.3% 

–-ZINC was at INR 251.60 a kg, down 0.4% 

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 238.90-INR 246.10

--Copper contract seen at INR 860.50-INR 886.00

--Lead contract seen at INR 178.10-INR 180.10

--Zinc contract seen at INR 248.30-INR 256.40

End

US$1 = INR 85.60
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajeev Pai

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