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Informist, Friday, Aug. 1, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of copper slumped for the second session on the Multi Commodity Exchange of India and the London Metal Exchange Friday after US President Donald Trump exempted refined copper from his 50% tariff on the metal. Market sentiment was also hurt by the firmer dollar and weak economic data from 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.

 

"The copper market is still reeling from Trump's announcement that refined metal would be exempt from the 50% levy," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. "There is a real risk that some copper sitting in COMEX warehouses will be re-exported to international markets, putting downward pressure on copper prices," he added.

 

At 1749 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.1% at 100.16. A stronger dollar makes dollar-denominated commodities such as copper expensive for those holding other currencies, denting demand.

 

Meanwhile, data released Thursday showed 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 their prices.

 

At 1751 IST, on the MCX, the August futures contract of:
-–ALUMINIUM was at INR 248.90 a kg, down 0.6%
–-Copper was at INR 877.45 a kg, down 1.9%
–-LEAD was at INR 179.10 a kg, down 0.2%
–-ZINC was at INR 261.40 a kg, down 1.6%

 

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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