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Informist, Monday, Aug. 25, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of copper on the Multi Commodity Exchange of India rose Monday as risk sentiment improved after US Federal Reserve Chair Jerome Powell signalled that the central bank might ease monetary policy in September. Trading volume was thin as the London Metal Exchange was shut for the Summer Bank Holiday.

 

Powell hinted at a potential rate reduction at the US Federal Open Market Committee's September meeting. He acknowledged growing concerns about employment conditions and emphasised persistent inflation risks. Powell maintained a balanced stance, and avoided any firm commitment on interest rate cuts.

 

"Industrial metals extended Friday's momentum after Fed Chair Jerome Powell's Jackson Hole address, where he signalled the central bank is likely to cut rates at its September meeting. Markets are now pricing in an 87% probability of a 25-bps reduction, reinforcing expectations that could support industrial demand," Kotak Securities said in a note.

 

However, the gains in COPPER were capped because of concerns about demand from top consumer China. "Recent data has revealed a marked slowdown in China's economy," Daniel Hynes, senior commodity strategist at ANZ Research said in a note. "Factory activity, investment and retails also disappointed in July, suggesting Beijing's crackdown on overcapacity and destructive price wars is casting a pall over the world's second biggest economy," Hynes said.

 

Moreover, a slowdown in the recent rampant growth of China's solar and electric vehicle markets also suggest consumption could be set for a period of softness, Hynes added. 

 

At 1744 IST, on the MCX, the August futures contract of:
-–ALUMINIUM was at INR 251.00 a kg, down 0.2%
–-Copper was at INR 883.50 a kg, up 0.3%

–-LEAD was at INR 180.50 a kg, up 0.2%
–-ZINC was steady at INR 266.90 a kg

 

The September futures contract of NICKEl was steady at INR 1,320.00

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 246.80-INR 254.20
--Copper contract seen at INR 872.00-INR 891.40
--Lead contract seen at INR 178.90-INR 181.60
--Zinc contract seen at INR 261.90-INR 270.00

--Nickel contract seen at INR 1,300.00-INR 1,340.00

 

End

 

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

 

Edited by Avishek Dutta

 

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