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Informist, Monday, Dec. 8, 2025

 

By Afra Abubacker

 

NEW DELHI – Futures contracts of all the base metals rose on the Multi Commodity Exchange of India on Monday, supported by a weaker rupee against the dollar. Copper contracts on the domestic bourse hit a record high, tracking gains in prices on the London Metal Exchange as traders stepped up purchases due to a weak dollar, concerns about supply, and expectations of a rate cut by the US Federal Reserve this week.

 

At 1525 IST, the most-active December contract of COPPER on the MCX was up 0.4% at INR 1,097.20 per kilogram, after touching a record high of INR 1,103.95 per kg. The three-month copper contract on the LME was up 0.1% at $11,652.80 per tonne, after hitting a high of $11,771.00 per tonne.

 

According to the CME's FedWatch tool, 87.4% of Fed fund futures traders are now pricing in a 25-basis-point rate cut by the US Fed Wednesday while 12.6% of traders anticipate a status quo. Typically, lower borrowing costs boost construction and manufacturing activities, aiding demand for copper.

 

Market sentiment improved further after Citigroup raised its copper price forecast amid firm demand and tightening supply conditions. On Friday, analysts at Citi said copper prices will continue to rise in the first quarter of next year and reach an average of $13,000 per tonne in the second quarter of 2026. This is up from their October outlook of $12,000 per tonne. Their more bullish case scenario sees copper at $15,000 per tonne, up from $14,000 per tonne.

 

Citi has raised its forecast as the current supply from mines is likely to be tight amid firm demand and developments in renewable energy and artificial intelligence. It also said additional tightness can be expected due to the stockpiling of the US commodities linked to COMEX and LME arbitrage.

 

"Copper's strength is rooted in a structural mismatch between supply and available stocks, as a persistent COMEX–LME premium has diverted the metal towards the US, tightening supply in the rest of the world," Reuters quoted Chinese broker GF Securities as saying in a note.

 

At 1525 IST, on the MCX, the December futures contract of:
-–ALUMINIUM was at INR 279.4 a kg, up 0.1%
--Copper was at INR 1,097.2 a kg, up 0.4%
–-LEAD was at INR 182.9 a kg, up 0.03%
–-ZINC was at INR 312.8 a kg, up 0.7%

--NICKEL was at INR 1,340 a kg, up 0.5%.

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 276.00-INR 282.00 
--Copper contract seen at INR 1,090.00-INR 1,108.00 
--Lead contract seen at INR 181.00-INR 184.50 
--Zinc contract seen at INR 309.00-INR 316.00 

--Nickel contract seen at INR 1,320.00-INR 1,355.00 

End

 

US$1 = INR 90.07

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

 

Edited by Subhojit Sarkar

 

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