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Informist, Friday, Sept. 5, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India rose Friday, tracking a rise in contracts on the London Metal Exchange because of a weak dollar. Market participants are now waiting for the US non-farm payroll data later in the day for further cues about the US Federal Reserve's interest rate trajectory.

At 1804 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down nearly 0.4% from the previous close at 97.91. A weak dollar makes dollar-denominated commodities such as base metals cheaper for those holding other currencies, thereby increasing demand for such metals.

"Base metals traded higher on Friday, with COPPER leading gains across both the LME and MCX. Prices were supported by expectations of a rare decline in China's refined output this month as new tax rules curb scrap supply," Kotak Securities said in a report. While China's imports remain weak and operating rates sluggish, demand is set to rebound with the seasonal pickup in September and October, the report said.

Meanwhile, Codelco, Chile's largest copper company, has said the country's copper production could stagnate at around 5.5 million tonnes per year, exacerbating concerns amid an already tight market. Chile is one of the leading producers of copper.

Expectations of a rate cut by the US Fed this month also supported prices. According to the CME FedWatch tool, traders are now almost fully pricing in a 25-basis-point rate cut by the US Fed. It is also projecting at least two reductions this year. Lower rates also reduce borrowing costs, which leads to higher economic growth and increases demand for base metals such as copper.

At 1709 IST, on the MCX, the September futures contract of:
-–ALUMINIUM was at INR 254.75 a kg, up 0.6%
–-Copper was at INR 904.35 a kg, up 0.5%

–-LEAD was at INR 181.65 a kg, up 0.1%
–-ZINC was at INR 275.50 a kg, up 0.8%

--NICKEL was at INR 1,342.00 a kg, up 0.2%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 251.80-INR 258.20
--Copper contract seen at INR 888.20-INR 909.80
--Lead contract seen at INR 180.10-INR 183.10
--Zinc contract seen at INR 270.10-INR 279.10

--Nickel contract seen at INR 1,322.00-INR 1,362.00

End

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

Edited by Saji George Titus

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