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Informist, Tuesday, Dec. 2, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of copper on the Multi Commodity Exchange of India were steady Tuesday as market participants were awaiting the delayed September report on the US Personal Consumption Expenditures Price Index, due Friday. The index is the US Federal Reserve's primary inflation gauge. Meanwhile, sentiment remains supportive for the red metal on the expectation of an interest rate cut by the US Federal Reserve next week, according to analysts. 

 

According to the CME's FedWatch tool, 87.2% of Fed fund futures traders are now pricing in a 25-basis-point rate cut in December, while 12.8% of traders anticipate no change in interest rates. Typically, lower borrowing costs boost construction and manufacturing activities, aiding copper demand.

 

"Some consolidation is seen for a while but overall bullish trend is intact and prices will gradually move in the upward direction," said Manoj Jain, Director and Head of Commodity Research of Prithvi Finmart Pvt. Ltd.

 

Moreover, investors stayed focused on future supply risks, following China's planned output cuts and major producer Codelco's premium hike. Chile's state-run miner Codelco raised prices of copper cathode for Chinese buyers to a $350-per-tonne premium overprices on the London Metal Exchange. This is $89 per tonne higher than the price agreed at last year's negotiations.

 

The market is focused on supply risks as investors assess the impact of major Chinese smelters' plan to cut copper concentrate feedstock production by 10% next year. "Smelters' plan to cut output reinforced the outlook that the supply of refined copper will turn tight," Reuters quoted analysts at Chinese broker Jinrui Futures as saying in a note.

 

In the previous session, copper prices rose to record levels due to firm demand and global supply constraints. "The rally mirrored record highs on the LME, supported by reduced production in Chile, planned output cuts by Chinese smelters, and a softer US dollar as markets anticipate a potential Fed rate cut," Kedia Advisory said in a note. 

 

At 1709 IST, on the MCX, the December futures contract of:
-–ALUMINIUM was at INR 277.5 a kg, up 0.6%
–-COPPER was steady at INR 1,050.15 a kg
–-LEAD was at INR 183.0 a kg, up 0.2%
–-ZINC was at INR 308.0 a kg, down 0.2%

--NICKEL was at INR 1,318.9 a kg, up 0.3%.

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 275.00-INR 280.00
--Copper contract seen at INR 1,040.00-INR 1,060.00
--Lead contract seen at INR 182.00-INR 184.00
--Zinc contract seen at INR 306.00-INR 310.00
--Zinc contract seen at INR 1,300.00-INR 1,340.00

End

 

US$1 = INR 89.87

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

 

 

Edited by Akul Nishant Akhoury

 

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