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Informist, Friday, Dec. 5, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of copper Friday rose to a record high on the Multi Commodity Exchange of India, tracking a rise in contracts on the London Metal Exchange due to a weak dollar. Copper prices also rose due to rising expectations of a rate cut by the US Federal Reserve next week. Market participants are waiting for the personal consumption expenditures price index, the Fed's preferred inflation gauge, which is due later in the day.

 

At 1615 IST, the dollar index, which measures the greenback's strength against a basket of six currencies, was down 0.1% at 98.96. A weaker dollar makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies, thereby aiding demand.

 

At 1622 IST, the most-active December contract of COPPER on the MCX was up 1.7% at INR 1,091.75 per kilograms, after touching a record high of INR 1,096.7 per kg. The three-month copper contract on LME was up 1.5% at $11,623.5 per tonne, after hitting a high of $11,705 per tonne.

 

According to the CME's FedWatch tool, 87.2% of Fed fund futures traders are now pricing in a 25-basis-point rate cut next week while 12.8% of traders anticipate a status quo. Typically, lower borrowing costs boost construction and manufacturing activities, aiding demand for copper.

 

Copper prices also rose due to concerns over supply and tighter availability of metals in warehouses registered with the London Metal Exchange. Traders have been redirecting significant volumes of copper to the US to pre-empt potential import tariffs, which has further strained supplies in other major hubs. LME data showed a spike in copper orders from Asian warehouses, intensifying market concerns about potential global supply shortages triggered by US tariffs.

 

"Meanwhile, attention remains on China ahead of key policy meetings, where authorities are expected to maintain a manufacturing-led growth approach," Kotak Securities said in a report. "With supply risks in focus and key US inflation data due later today, volatility may persist, keeping copper and broader base metals biased to the upside," it said.

 

At 1622 IST, on the MCX, the December futures contract of:
-–ALUMINIUM was at INR 279.10 a kg, up 0.3%
--Copper was at INR 1,091.75 a kg, up 1.7%
–-LEAD was at INR 183.15 a kg, up 0.1%
–-ZINC was at INR 312.10 a kg, up 1.3%

--NICKEL was at INR 1,335.00 a kg, up 0.1%.

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 278.00-INR 283.00
--Copper contract seen at INR 1,080.00-INR 1,105.00
--Lead contract seen at INR 182.00-INR 185.50
--Zinc contract seen at INR 309.00-INR 315.00

--Nickel contract seen at INR 1,315.00-INR 1,355.00

End

 

Edited by Ashish Shirke

 

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