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Informist, Thursday, Dec. 4, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of copper fell on the Multi Commodity Exchange as well as the London Metal Exchange Thursday because of profit booking after prices rose to record highs, analysts said.

 

At 1637 IST, the most-active December COPPER contract on the MCX was down 0.4% at INR 1,071.4 per kilograms, after touching a record high of INR 1,087.20 per kg. The three-month copper contract on the LME was down 0.7% at $11,404.0 per tonne, after hitting a high of $11,529 per tonne.

 

However, the fall in prices was limited due to growing expectations of a US Federal Reserve rate cut next week. The ADP employment report showed private payrolls in the US declined unexpectedly in November. Private sector employment fell by 32,000 last month. Economists surveyed by Reuters had predicted a rise of 10,000 jobs. "... weaker economic data cemented expectations that the Fed will cut interest rates at its meeting next week," SMC Global Securities said in a report.

 

According to the CME's FedWatch tool, 89.2?dfund futures traders are now pricing in a 25-basis-point rate cut in December while 10.8% of traders anticipate no change in interest rates. Typically, lower borrowing costs boost construction and manufacturing activities, aiding copper demand.

 

Moreover, Chile's copper output fell 7% on year in October to 458,405 tonnes, reinforcing expectations of lower global availability. Chile's Codelco offered record premiums to Chinese buyers, hinting at a potential shift to favour US customers. Chile's state-run miner Codelco raised prices of copper cathode for Chinese buyers to a $350-per-tonne premium over prices on the LME. This is $89 per tonne higher than the price agreed at last year's negotiations.

 

Meanwhile, large volumes of the metal are being shipped to the US due to fears of tariffs. Traders have been ramping up shipments to the US amid speculation that the Donald Trump administration could impose new import tariffs next year, squeezing supply in other regions.

 

At 1637 IST, on the MCX, the December futures contract of:
-–ALUMINIUM was at INR 276.85 a kg, down 0.5%
–-COPPER was at INR 1,071.40 a kg, down 0.4%
–-LEAD was at INR 182.50 a kg, down 0.2%
–-ZINC was at INR 306.90 a kg, down 0.7%

--NICKEL was at INR 1,335.00 a kg, up 0.4%.

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 275.00-INR 279.00
--Copper contract seen at INR 1,060.00-INR 1,078.00
--Lead contract seen at INR 181.00-INR 183.50
--Zinc contract seen at INR 305.00-INR 310.00

--Nickel contract seen at INR 1,310.00-INR 1,350.00

End

 

Edited by Subhojit Sarkar

 

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