More Stories

Informist, Wednesday, Dec. 3, 2025

By Reshma Ravi 

MUMBAI – Futures contracts of copper on the Multi Commodity Exchange of India hit a record high Wednesday, tracking gains in global prices on the London Metal Exchange amid a weak dollar. Prices also rose on growing expectations of a US Federal Reserve rate cut next week.

At 1558 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was down 0.3% at 99.03. A weak dollar makes dollar-denominated commodities such as base metals cheaper for those holding other currencies, aiding demand for such metals.

At 1639 IST, the most-active December COPPER contract on the MCX was up 2% at INR 1,067.3 per kilograms, after touching a record high of INR 1,073.0 per kg. Copper prices rose to record levels supported by tight global supply and elevated premiums. "The rally followed record highs on the London Metal Exchange, driven by lower output in Chile, planned production cuts by Chinese smelters, and a softer US dollar as markets priced in a potential Federal Reserve rate cut," Kedia Advisory said in a note.  

Chile's state-run miner Codelco raised prices of copper cathode for Chinese buyers to a $350-per-tonne premium over prices on the London Metal Exchange. This is $89 per tonne higher than the price agreed at last year's negotiations.

Rising expectation of a rate cut by the US Federal Reserve next week also supported the red metal. According to the CME's FedWatch tool, 87% of traders are now pricing in a 25-basis-point rate cut in December while 13% traders anticipate no change in interest rates. Typically, lower borrowing costs boost construction and manufacturing activities, aiding copper demand.

Additionally, the market remained supported by concern over reduced global output. Chile's copper output fell 7% on year in October to 458,405 tonnes. Prices also rose after Chile's Codelco offered record premiums to Chinese buyers, hinting at a potential shift to favour US customers.

At 1559 IST, on the MCX, the December futures contract of:
-–ALUMINIUM was at INR 277.70 a kg, up 1.2%
–-COPPER was at INR 1,070.00 a kg, up 2.2%
–-LEAD was at INR 183.20 a kg, up 0.3%
–-ZINC was at INR 309.70 a kg, up 1.2%

--NICKEL was at INR 1,325.00 a kg, up 0.6%.

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 275.00-INR 280.00
--Copper contract seen at INR 1,048.00-INR 1,068.00
--Lead contract seen at INR 182.00-INR 185.00
--Zinc contract seen at INR 304.00-INR 312.00
End

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

Edited by Subhojit Sarkar

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.