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Informist, Tuesday, Jul. 8, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India Tuesday, tracking a rise in contracts on the London Metal Exchange because of a weak dollar. Market participants are now waiting for China's official CPI due early Wednesday.

At 1558 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.1% at 97.42. A weak dollar makes dollar-denominated commodities, such as base metals, cheaper for those holding other currencies, which helps demand.

However, the upside in prices was capped by concerns about demand amid renewed trade tensions. US President Donald Trump announced new tariffs on 14 trading partners, including Japan and South Korea. According to letters posted on Trump's social media platform Truth Social, goods exported to the US from these countries will face tariffs ranging from 25% to 40%, effective Aug. 1, sparking concerns about escalating trade tensions between the US and key allies. Moreover, Trump said he will impose 10% additional tariffs on countries aligning with the "anti-American policies" of the BRICS group of nations.

"Sentiment was hit by renewed trade tensions after President Trump pledged a 10% tariff on BRICS aligned nations, in addition to new tariffs of 25% to 40% on imports from 14 countries starting August 1. Uncertainty surrounding sector-specific tariffs, particularly on aluminum, steel, and copper, further pressured prices," Kotak Securities said in a report.

At 1609 IST, on the MCX, the July futures contract of:
-–ALUMINIUM was at INR 248.10 a kg, up 0.3%
–-COPPER was at INR 891.20 a kg, up 0.2%
–-LEAD was steady at INR 180.65 a kg
–-ZINC was at INR 255.50 a kg, up 0.5%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 245.40-INR 249.60
--Copper contract seen at INR 880.80-INR 897.90
--Lead contract seen at INR 178.90-INR 182.80
--Zinc contract seen at INR 251.40-INR 257.70

End

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

Edited by Rajeev Pai

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