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Informist, Friday, Oct. 3, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of copper on the Multi Commodity Exchange of India rose to a fresh record high Friday, tracking sharp gains in contracts on the London Metal Exchange, due to growing concerns over a supply deficit after multiple incidents at mines across the globe. Other base metals also rose, supported by a strong risk appetite and expectations of rate cuts by the US Federal Reserve later this month, according to analysts. The most-active October COPPER contract hit a new record high of INR 981.90 per kg earlier in the day.

 

Chile's copper output fell nearly 10% in August after a deadly accident at Codelco's flagship mine, while a mudslide at Indonesia's Grasberg mine has taken about 3% of global supply offline, with full recovery not expected until 2027, Kotak Securities said in a report.

 

Copper prices on the domestic exchange have risen around 5% in the last one week after mining giant Freeport-McMoran declared force majeure on contracted supplies from its Grasberg mine in Indonesia. Freeport-McMoRan said it expects consolidated sales to be lower by around 4% for copper and nearly 6% for gold in the third quarter, compared to its previous forecast. The Grasberg copper 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.

 

"Today's breakout in copper is only the beginning," said Kedia Advisory in a note. "The next two years will likely see 20–25% gains across the base metal complex. Copper and zinc are expected to lead this move, with aluminium and lead gradually participating in the rally."

 

Chilean state-owned mining company Codelco said its biggest mine, El Teniente, could take longer to return to full production than originally planned after a deadly tunnel collapse in July. The fall in production is likely to exceed the 33,000 tonnes originally forecast by the company.

 

"Overall, metals are poised to maintain their upward momentum, buoyed by a softer dollar and a decline in available stocks, while Chinese markets are closed until October 8 due to the Golden Week holiday," Kotak Securities said.

 

At 1819 IST, on the MCX, the October futures contract of:
-–ALUMINIUM was at INR 259.95 a kg, up 0.3%
–-Copper was at INR 978.00 a kg, up 2.1%
–-LEAD was at INR 183.65 a kg, up 0.2%
–-ZINC was at INR 291.40 a kg, up 0.4%

--NICKEL was at INR 1,360.50 a kg, up 0.4%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 257.00-INR 263.10
--Copper contract seen at INR 955.90-INR 999.70
--Lead contract seen at INR 182.60-INR 185.40
--Zinc contract seen at INR 287.20-INR 299.30
--Nickel contract seen at INR 1,339.70-INR 1,384.30

End

 

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

 

Edited by Saji George Titus

 

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