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Informist, Wednesday, Aug. 6, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of copper rose on the Multi Commodity Exchange of India Wednesday, tracking a rise in contracts on the London Metal Exchange because of a weaker dollar. Concerns about supply from Chile also lifted market sentiment.

At 1740 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.2% at 98.56. A weaker dollar makes dollar-denominated commodities such as copper cheaper for those holding other currencies, aiding demand.

Chilean state-run miner Codelco reduced copper extraction operations at its El Teniente mine after an earthquake killed six workers last week. Codelco is the world's biggest copper miner and Chile supplies about a quarter of the world's red metal. "The disruption threatens a key supply source for Chinese smelters, further tightening an already constrained concentrate market," Kotak Securities said in a report.

However, gains in copper prices were capped by a sharp rise in inventories at warehouses registered with the LME. Copper stocks rose by 14,275 tonnes Tuesday and another 2,275 tonnes Wednesday to 156,125 tonnes. Further, "lingering pressure from swollen US stockpiles" also capped gains for copper, according to Kotak.

"Trump's decision to spare refined copper from the 50% tariff on US imports sent US copper prices plunging last week. Moreover, traders are now starting to re-export some of the record shipments they brought into the US in a bid to gain from higher prices," Daniel Hynes, senior commodity strategist at ANZ Research said in a note.

ALUMINIUM, LEAD, and ZINC contracts traded in the green because of a weaker dollar. Market participants are now waiting for China's trade balance data due early Thursday for further cues. 

At 1744 IST, on the MCX, the August futures contract of:
-–Aluminium was at INR 252.85 a kg, up 0.6%
–-Copper was at INR 884.20 a kg, up 0.4%
–-Lead was at INR 180.60 a kg, up 0.3%
–-Zinc was at INR 267.30 a kg, up 0.9%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 249.00-INR 254.40
--Copper contract seen at INR 869.10-INR 894.20
--Lead contract seen at INR 179.40-INR 181.80
--Zinc contract seen at INR 262.30-INR 270.80

End

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

Edited by Nishant Maher

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