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Informist, Monday, Oct. 6, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of copper on the Multi Commodity Exchange of India pared earlier gains and traded in the red Monday, tracking a fall in contracts on the London Metal Exchange because of a rise in the dollar. The copper price surged to a fresh record high earlier in the day on the domestic exchange, buoyed by concerns about a potential global deficit and expectations of another rate cut by the US Federal Reserve later this month.

 

At 1700 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.4% at 98.41. A stronger dollar makes dollar-denominated commodities such as COPPER expensive for those holding other currencies, thereby denting demand for such metals.

 

Copper prices touched a fresh record high of INR 1,001.15 per kg earlier in the day. Multiple supply disruptions at major mines across the globe have worried market participants about a potential supply deficit in the global copper market this year. 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.

 

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 in the third quarter, compared to its previous forecast. 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.

 

"Recent reports of supply disruptions at major mines--including Freeport-McMoRan Inc. (Grasberg), Codelco (EI Teniente) and Hudbay Minerals Inc.--have led to a sharp downward revision in the output guidance for the year," ING analysts said in a report.

 

Other base metals, except ALUMINIUM, fell on the MCX, taking cues from the LME because of a firm dollar.

 

At 1652 IST, on the MCX, the October futures contract of:
-–Aluminium was at INR 260.55 a kg, up 0.3%
–-Copper was at INR 989.40 a kg, down 0.1%
–-LEAD was at INR 183.35 a kg, down 0.4%
–-ZINC was at INR 293.55 a kg, down 0.4%

--NICKEL was at INR 1,354.00 a kg, down 0.1%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 257.50-INR 263.10
--Copper contract seen at INR 967.90-INR 1015.50
--Lead contract seen at INR 181.90-INR 184.80
--Zinc contract seen at INR 288.50-INR 300.20
--Nickel contract seen at INR 1,330.20-INR 1,376.80

 

End

 

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

 

Edited by Rajeev Pai

 

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