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Informist, Monday, Aug. 4, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India and the London Metal Exchange rose Monday after weaker-than-expected economic data from the US raised expectations of an interest rate cut by the US Federal Reserve. Market participants are now waiting for China's Caixin manufacturing purchasing managers' index, due Tuesday.

 

US non-farm payrolls rose by 73,000 in July, according to the US Bureau of Labor Statistics. This reading was worse than the market expectation of 110,000, and followed the increase of 14,000 in revised figure recorded for June. This weak labour market data raised investors' expectations of a rate cut by the US Federal Reserve at its next meeting. The CME's FedWatch tool now shows nearly 88% chances of a rate cut by the Federal Open Market Committee in September, against 63% a week ago. 

 

COPPER prices also rose due to concerns about supply after a major accident halted underground operations at Codelco's El Teniente mine in Chile, analysts said. "The mine accounts for more than a quarter of Codelco's output and its disruption has sparked worries about near-term global supply," Kotak Securities said in a report. However, market sentiment remains fragile amid signs of softening global demand and bloated US inventories, which had swelled due to front-loading of copper ahead of expected tariffs, the report said.

 

"Copper inventories at COMEX warehouses are at their highest in 21 years. That stockpile might now be re-exported. This will be bearish for LME prices with more copper showing up in LME warehouses," analysts at ING said in a report.

 

At 1749 IST, on the MCX, the August futures contract of:
-–ALUMINIUM was at INR 251.45 a kg, up 0.7%
–-Copper was at INR 886.00 a kg, up 0.7%
–-LEAD was at INR 179.95 a kg, up 0.4%
–-ZINC was at INR 264.90 a kg, up 1.1%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 248.10-INR 254.60
--Copper contract seen at INR 871.20-INR 900.80
--Lead contract seen at INR 178.70-INR 181.20
--Zinc contract seen at INR 259.40-INR 268.60

End

 

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

 

Edited by Tanima Banerjee

 

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