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Informist, Thursday, Jul. 31, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of copper slumped on the Multi Commodity Exchange of India and the London Metal Exchange Thursday after US President Donald Trump exempted refined copper from his 50% tariff on the metal. Market sentiment was also hurt by weak economic data from top copper consumer China.

 

Trump announced that refined COPPER would not attract 50% import duty and the tariff was only on semi-finished copper products. Trump said Wednesday the US would impose 50% tariff on copper pipes and wiring, but the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates, and cathodes, Reuters reported.

 

"The exemption triggered a historic 21% plunge in Comex copper prices, erasing the hefty premium over LME and unsettling global trade flows," Kotak Securities said in a report. "The move has left large stockpiles stranded in US warehouses, raising concerns over potential re-exports."

 

Moreover, China's Manufacturing Purchasing Managers' Index fell to a six-month low of 49.3 in July, reflecting persisent weakness in demand in the country. A reading below 50 indicates contraction in economic activity while a number above 50 signals an expansion. China is the top consumer and producer of non-ferrous metals and weak economic data from the country weighs on prices of these metals.

 

"The move to exclude refined copper is expected to roil copper markets," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. "In anticipation of the levy, consumers had been importing huge amounts of the metal into the US. The massive volumes currently sitting in COMEX warehouses are now at risk of being re-exported to international markets."

 

At 1912 IST, on the MCX, the August futures contract of:
-–ALUMINIUM was at INR 251.30 a kg, down 1%
–-Copper was at INR 876.60 a kg, down 2.3%
–-LEAD was at INR 179.60 a kg, down 0.8%
–-ZINC was at INR 264.50 a kg, down 1.1%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 249.80-INR 255.10
--Copper contract seen at INR 862.20-INR 894.90
--Lead contract seen at INR 178.80-INR 181.20
--Zinc contract seen at INR 261.20-INR 269.70

 

End

 

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

 

Edited by Rajeev Pai

 

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