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Informist, Friday, Jul. 25, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper 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 index. Market sentiment was also hurt due to rising inventories at LME-accredited warehouses.

At 1614 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 97.67. A stronger dollar makes dollar-denominated commodities, such as COPPER, expensive for those holding other currencies, denting demand.

"The weakness in copper comes as traders turn cautious ahead of the upcoming US tariff deadline, set to impose a 50% duty on copper imports. Further pressure came amidst the dollar's rebound, by strong US jobs data, which has weighed on sentiment by dimming hopes of near-term Fed rate cuts," Kotak Securities said in a report.

Copper inventories at LME-accredited warehouses rose by 3,700 tonnes to 128,475 tonnes.

US President Donald Trump had announced a 50% tariff on copper imports, effective Aug. 1, as part of his efforts to promote domestic mining and metal processing. "We maintain the view that once the tariffs kick in with a definite announcement by the US, they are likely to prove bearish for LME prices, as the US copper rush ends, improving the availability of the metal elsewhere," analysts at BMI, a unit of Fitch Solutions, said in a report. "Rising copper stocks on warrant on the LME might be an early indicator of this, with inventories climbing up by 90% since the start of the month up to July 22," the analysts added.

ALUMINIUM, ZINC, and LEAD contracts traded in the green on easing trade tensions. Media reports suggested the US could be close to reaching an agreement with the European Union, which could be on the lines of its trade deal with Japan. According to reports, the potential deal would see the US impose a 15% tariff on imports from the EU, with both parties waiving tariffs on certain products.

Market participants now await the meeting between the US and China next week for further cues on the tariff truce between the two countries.

At 1623 IST, on the MCX, the July futures contract of:
-–Aluminium was at INR 255.00 a kg, up 0.3%
–-Copper was at INR 891.40 a kg, down 0.2%
–-Lead was at INR 180.40 a kg, up 0.5%
–-Zinc was at INR 269.25 a kg, up 0.1%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 252.10-INR 258.20
--Copper contract seen at INR 882.80-INR 902.40
--Lead contract seen at INR 178.70-INR 181.90
--Zinc contract seen at INR 265.10-INR 274.40

End

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

Edited by Saji George Titus

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