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Informist, Thursday, Jan. 29, 2026

By Ashutosh Pati

MUMBAI – Futures contracts of aluminium and copper on the Multi Commodity Exchange of India surged to fresh record highs Thursday, tracking a rise in contracts on the London Metal Exchange because of a weak dollar. COPPER prices continue to be buoyed by rising demand, while ALUMINIUM prices surged on concerns about supply after output in China hit the government-mandated capacity limit.

At 2031 IST, the dollar index, which measures the greenback's strength against a basket of six currencies, was down 0.1% at 96.19. A weak dollar makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies, aiding demand. "Sentiment was further buoyed by a sharp drop in the US dollar, after comments from Donald Trump reinforced expectations of a prolonged period of currency weakness, supporting commodity prices," Kotak Securities said in a report.

The US dollar fell to its lowest level in four years earlier this week after US President Donald Trump said Tuesday that the value of the dollar was "great" when asked whether he thought it had declined too much. Traders took Trump's signalling that he was unconcerned about the weakness as a cue to sell the greenback aggressively. Though the index rebounded on Thursday after US Treasury Secretary Scott Bessent said the US has a strong dollar policy and that means setting the right fundamentals, it remained in the lower range.

Aluminium prices on the domestic bourse rose to a record high of INR 361.25 per kg earlier in the day, while copper prices hit a fresh peak of INR 1,480.3 per kg.

Aluminium prices rose above $3,260 per tonne on the LME, the highest level since April 2022, reflecting tightening global supply. China's aluminium production hit a record 45.02 million tonnes in 2025, reaching the government-imposed capacity cap. "With limited scope for further expansion in China, concerns are growing over whether producers elsewhere can ramp up supply quickly enough to meet demand from the energy transition. Supply risks were amplified by disruptions at key smelters in Iceland, Mozambique and Australia," Kotak said.

"Copper's rally was further supported by recurring supply tightness and strong industrial demand, particularly from sectors linked to renewable energy and artificial intelligence," Kedia Advisory said in a note. Copper prices also rose as investors sought safe havens and exposure to real assets amid geopolitical and trade uncertainties, the brokerage said.

At 2026 IST, on the MCX, the February futures contract of:

--ALUMINIUM was at INR 355.50 a kg, up 7.3%
--COPPER was at INR 1,476.00 a kg, up 11.8%
–-LEAD was at INR 203.90 a kg, up 3.7%
–-ZINC was at INR 355.50 a kg, up 6.3%

--NICKEL was at INR 1,795.00 a kg, up 4.2%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 340.00-INR 364.00

--Copper contract seen at INR 1,400.00-INR 1,490.00
--Lead contract seen at INR 196.00-INR 208.00

--Zinc contract seen at INR 340.00-INR 355.00

--Nickel contract seen at INR 1,680.00-INR 1,840.00

End

US$1 = INR 91.95

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

Edited by Saji George Titus

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