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Informist, Thursday, Jun. 26, 2025

By Ashutosh Pati

NEW DELHI – Futures contracts of copper rose on the Multi Commodity Exchange of India Thursday, tracking a rise in contracts on the London Metal Exchange because of a weak dollar. Market sentiment was also lifted by dwindling copper inventories outside the US.

At 1811 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.4% at 97.32. A weak dollar makes dollar-denominated commodities such as copper cheaper for those holding other currencies, aiding demand.

COPPER prices rose due to depleting inventories globally as traders are moving the metal to the US, ahead of any potential tariffs on the metal. US President Donald Trump had ordered the US Commerce Department in February to investigate the threat that copper imports pose to national security and suggest ways to mitigate any such threat. The mitigation efforts include "potential tariffs, export controls, or incentives to increase domestic production," according to the order.

"Traders are directing copper to the US to take advantage of the high premiums in the physical market ahead of the results of an investigation into copper imports," Dow Jones quoted SP Angel analysts as saying in a note. "The investigation could see substantial tariffs imposed on copper imports, in order to stimulate copper mines and smelters in the region," the analysts said. Over 400,000 tonnes of physical copper has been moved into US warehouses this year, increasingly starving warehouses in the rest of the world, they added.

Meanwhile, copper stocks at LME-accredited warehouses have plunged 60% this year to around 93,000 tonnes as shipments were redirected to the US ahead of potential tariffs, according to a report by Kotak Securities. Overall, base metals are likely to remain supported by improved sentiment as the dollar slipped to a three-year low, the report said.

At 1841 IST, on the MCX, the June futures contract of:

-–Aluminium was at INR 245.80 a kg, up 0.1%

–-Copper was at INR 883.50 a kg, up 0.6%

–-Lead was at INR 178.10 a kg, up 0.4% 

–-Zinc was at INR 256.60 a kg, up 0.8%

Trading levels for the day on the MCX:

--Aluminium contract seen at INR 240.60-INR 249.40

--Copper contract seen at INR 866.70-INR 886.20

--Lead contract seen at INR 176.50-INR 180.70

--Zinc contract seen at INR 251.20-INR 258.50

End

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

Edited by Deepshikha Bhardwaj

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