India Base Metals
Down, US tariffs on EU, Mexico imports seen hitting demand
This story was originally published at 18:22 IST on 14 July 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of all base metals edged lower on the Multi Commodity Exchange of India and the London Metal Exchange Monday on demand concern amid rising trade tensions. Market sentiment was also hurt by a rise in inventories of most metals at warehouses monitored by the Shanghai Futures Exchange.
On Saturday, US President Donald Trump announced the US will impose a 30% tariff on goods imported from the European Union and Mexico, effective Aug. 1. Over the weekend, Trump also said he will send Patriot air defence missiles to Ukraine. Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace talks with Ukraine. Last week, Trump had said he planned to make a "major statement" on Russia on Monday.
"This raised the prospect of an economic slowdown which could hurt demand for industrial metals," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. "The (copper) market is also facing its own industry-targeted tariffs after Trump announced the US will place a 50% levy on copper imports from 1 August," Hynes added.
The losses in copper prices were restricted due to a potential supply tightening in markets outside the US. Trump announced a 50% tariff on copper imports, effective Aug. 1, as part of his efforts to promote domestic mining and metal processing.
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 increased by 4,617 tonnes to 49,981 tonnes and LEAD stocks were up 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.
Market participants are now waiting for China's industrial production data and retail sales data due Tuesday for further cues. They will also keep an eye on the US consumer price index data due Tuesday.
At 1719 IST, on the MCX, the July futures contract of:
-–Aluminium was at INR 248.80 a kg, down 0.4%
–-Copper was at INR 881.55 a kg, down 0.2%
–-Lead was at INR 179.35 a kg, down 0.4%
–-Zinc was at INR 257.50 a kg, down 0.4%
Trading levels for the day on the MCX:
--Aluminium contract seen at INR 245.90-INR 251.40
--Copper contract seen at INR 869.00-INR 894.40
--Lead contract seen at INR 178.10-INR 180.60
--Zinc contract seen at INR 253.00-INR 261.80
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subhojit Sarkar
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