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Informist, Wednesday, Sept. 17, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India and the London Metal Exchange fell Wednesday as market participants turned cautious ahead of the outcome of the US Federal Open Market Committee's two-day meeting, due later in the day, analysts said. Market sentiment was also hurt by a slight recovery in the dollar index.

At 2028 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.1% at 96.73. A stronger dollar makes dollar-denominated commodities such as base metals expensive for those holding other currencies, thereby denting demand for such metals.

"LME COPPER led the losses, falling nearly 2% to $9,940/t (tonne), pressured by rising inventories and risk-off sentiment. Notably, LME copper stocks in US warehouses increased by 175 tonnes, the first delivery since December 2023, further weighing on sentiment," Kotak Securities said in a report.

Copper prices on the domestic exchange had risen to a 16-month high of INR 921.50 per kilogram on Monday due to expectations of a rate cut by the Fed and concerns about supply. LME copper prices also rose to a 15-month high Monday to $10,173 per tonne. The Grasberg mine in Indonesia, the world's second-largest copper mine, suspended operations after a large flow of wet material blocked access to parts of the underground mine, restricting evacuation routes for workers. Freeport-McMoran has confirmed that its Grasberg Mine will remain closed as rescue operations continue.

Volatility is likely to persist as traders await Fed Chair Powell's comments and the dot plot for fresh cues on the policy trajectory for the rest of the year. 

At 2022 IST, on the MCX, the September futures contract of:
-–ALUMINIUM was at INR 257.95 a kg, down 0.9%
–-Copper was at INR 903.85 a kg, down 1.3%
–-LEAD was at INR 182.55 a kg, down 0.3%
–-ZINC was at INR 279.55 a kg, down 1.3%

The October futures contract of NICKEL was steady at INR 1,355.00 a kg

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 255.90-INR 262.30
--Copper contract seen at INR 889.40-INR 914.70
--Lead contract seen at INR 180.60-INR 184.30
--Zinc contract seen at INR 276.00-INR 286.40
--Nickel contract seen at INR 1,325.50-INR 1,374.50

End

US$1 = INR 87.81

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

Edited by Ashish Shirke

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