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Informist, Friday, Jul. 4, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India Friday, tracking a fall in contracts on the London Metal Exchange because of a rise in the dollar. The market sentiment was also hurt due to an increase in inventories at warehouses monitored by the Shanghai Futures Exchange.

At 1611 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 96.94. A strong dollar makes dollar-denominated commodities, such as base metals, expensive for those holding other currencies, denting demand.

ALUMINIUM stocks at Shanghai Futures Exchange monitored warehouses rose by 342 tonnes on week to 94,632 tonnes in the week ended Friday and COPPER inventories rose by 3,039 tonnes on week to 84,589 tonnes. ZINC stocks rose by 1,731 tonnes on week to 45,364 tonnes and LEAD stocks rose by 1,374 tonnes to 53,303 tonnes in the week ended Friday.

"Copper's recent rally took a breather amid concerns over demand destruction," Daniel Hynes, senior commodity strategist at ANZ Research said in a note. "Copper prices have gained more than 16% to breach $10,000 per tonne (on LME) since the US announced its reciprocal tariffs on trading partners. However, interest from Chinese fabricators appears to be waning due to the elevated prices," Hynes said.

This year's drawdown in copper inventories at LME-accredited warehouses reversed this week, with stockpiles rising 4% over the week. This may be due to Chinese smelters coming under pressure to close out short positions with physical delivery after a recent squeeze on the exchange, Hynes added.

At 1622 IST, on the MCX, the July futures contract of:
-–Aluminium was at INR 248.85 a kg, down 0.1%
–-Copper was at INR 890.45 a kg, down 0.9%
–-Lead was at INR 181.30 a kg, down 0.1%
–-Zinc was at INR 257.00 a kg, down 0.2%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 246.50-INR 252.20
--Copper contract seen at INR 887.50-INR 911.80
--Lead contract seen at INR 179.70-INR 183.00
--Zinc contract seen at INR 255.00-INR 260.40

End

US$1 = INR 85.39

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

Edited by Saji George Titus

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