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Informist, Monday, Dec. 29, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of copper on the Multi Commodity Exchange of India fell owing to profit-taking Monday after hitting a record high earlier in the day, analysts said. Investors piled on to copper after a two-day break on the London Metal Exchange on speculation that huge flows of the metal to the US would leave the rest of the world short on supply next year, Bloomberg reported. This comes amid fears of the US imposing tariffs on copper imports.

 

"Trade uncertainty and US tariff risks encouraged pre-emptive stockpiling, while a weaker US dollar and expectations of further Federal Reserve rate cuts supported speculative inflows," Kedia Advisory said in a note. At 1742 IST, the January COPPER contract on MCX was down 2.3% at INR 1,250.3 per kilogram. It had earlier hit a high of INR 1,392.95 per kg. The fall was limited by tight supplies and supportive US economic data.

 

"The US economy expanded at its fastest pace in two years in the third quarter (Jul-Sept), supported by strong consumer spending, exports, and industrial activity, lending firm support to copper-intensive sectors," Kedia Advisory said. 

 

The US GDP increased at a 4.3% annualised rate in the September quarter, the fastest pace since the third quarter of 2023, data from the Bureau of Economic Analysis showed last week. Economists polled by Reuters had forecast the US GDP would rise at 3.3%. The economy had grown at 3.8% in the June quarter. Consumer spending increased at 3.5% in the September quarter, the strongest pace since the fourth quarter of 2024, after advancing at 2.5% pace in Apr-Jun.

 

On the demand side, copper is a major beneficiary of energy transition and artificial intelligence-related developments, which are also expected to support prices, Nirmal Bang Securities said in a note. Growing expectations of rate cuts by the US Federal Reserve next year are also supporting the dollar-denominated commodity. Typically, lower borrowing costs boost construction and manufacturing activities, aiding demand for the metal.

 

Further, the announcement of higher fiscal spending in 2026 by China would support the demand outlook for the metal, ICICI Direct said in a report.

 

At 1744 IST, on the MCX, the January futures contract of:
-–ALUMINIUM was at INR 291.80 a kg, down 3%
--Copper was at INR 1,250.30 a kg, down 2.3% 
–-LEAD was at INR 182.70 a kg, down 0.2%
–-ZINC was at INR 305.95 a kg, down 2.2%

--NICKEL was at INR 1.527.00 a kg, down 0.1%.

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 292.00-INR 297.00
--Copper contract seen at INR 1,230.00-INR 1,360.00
--Lead contract seen at INR 181.00-INR 185.00
--Zinc contract seen at INR 302.00-INR 312.00

--Nickel contract seen at INR 1,540.00-INR 1,620.00

 

End

 

US$1 = INR 89.97

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

 

Edited by Rajeev Pai

 

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