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Informist, Friday, Jul. 11, 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 firm dollar. Market sentiment was also weighed down by a rise in the inventories of most metals at warehouses monitored by the Shanghai Futures Exchange.

At 1547 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 97.74. 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 8,565 tonnes on week to 103,197 tonnes in the week ended Friday. ZINC stocks rose by 4,617 tonnes to 49,981 tonnes and LEAD stocks rose by 6,462 tonnes to 55,149 tonnes in the week ended Friday. However, COPPER inventories fell by 3,127 tonnes on week to 91,462 tonnes.

The losses in copper prices were restricted due to a potential supply tightening in markets outside the US. US President Donald Trump announced a 50% tariff on copper imports, effective Aug. 1, as part of his efforts to promote domestic mining and metal processing. The decision was made following a national security assessment, said Trump, who shared the news on social media.

Traders and companies will keep moving copper to the US till the tariffs are implemented, reducing inventories elsewhere. "In the short term, US companies are likely to try to ship as much copper as possible to the US before the 1 August deadline. The reduction in inventories on the LME and SHFE could therefore pick up speed again and support the LME copper price, at least temporarily," Thu Lan Nguyen, head of FX and commodity research at Commerzbank Research, said in a report.

Market participants are now waiting for a slew of economic data from China due next week for further cues.

At 1558 IST, on the MCX, the July futures contract of:
-–Aluminium was at INR 248.70 a kg, down 0.4%
–-Copper was at INR 881.00 a kg, down 0.5%
–-Lead was at INR 180.30 a kg, down 0.1%
–-Zinc was at INR 259.00 a kg, down 0.7%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 248.20-INR 251.50
--Copper contract seen at INR 876.30-INR 895.50
--Lead contract seen at INR 179.20-INR 182.20
--Zinc contract seen at INR 256.10-INR 264.80

End

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

Edited by Saji George Titus

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