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Informist, Thursday, Mar. 5, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of most base metals edged lower on the Multi Commodity Exchange of India Thursday, tracking a fall in contracts on the London Metal Exchange because of a firm dollar. However, aluminium prices on the domestic bourse surged to a record high earlier in the day amid fears of supply disruptions from the ongoing hostilities in West Asia, which have led to the closure of the Strait of Hormuz.

 

ALUMINIUM prices rose as Aluminium Bahrain declared force majeure on supply contracts, citing the closure of the Strait of Hormuz, a critical route for regional producers to transport metal and raw materials. West Asia accounts for nearly 8% of global aluminium production. The March aluminium futures rose to a new all-time high of INR 336.25 per kg earlier Thursday.

 

"Alba (Aluminium Bahrain) is one of the world's largest aluminium producers, with output of 1.623 million tonnes in 2025," analysts at ING Economics said in a report. "Any prolonged disruption would have meaningful implications for global supply balances," they added.

 

This follows the controlled shutdown of output at Qatalum, an aluminium smelter plant jointly owned by Qatar's state-owned aluminium producer and Norsk Hydro. "... Norsk Hydro issued a force majeure notice to customers over shipments from the 636kt/year (636,000 tonnes) Qatalum smelter in Qatar. Operations at the facility were affected by Iranian drone strikes, which led to a suspension of natural gas supplies," ING analysts said.

 

COPPER prices fell due to a strong dollar. At 1724 IST, the dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.2% at 99.01. A stronger dollar makes dollar-denominated commodities, such as base metals, expensive for holders of other currencies, denting demand.

 

"Markets remain cautious about further escalation (in West Asia), particularly as tensions threaten key trade routes in the Middle East (West Asia)," Kotak Securities said in a report. Meanwhile, in China, policymakers set a relatively modest GDP growth target of 4.5%–5%, reflecting ongoing concerns around deflationary pressures and the impact of higher US tariffs, the report said.

 

"Despite the near-term pressure, copper's downside may remain limited as tight mine supply and disruptions at major operations continue to constrain global production growth," the brokerage said.

 

At 1717 IST, on the MCX, the March futures contract of:

--Aluminium was at INR 331.95 a kg, up 0.5%
--Copper was at INR 1,199.05 a kg, down 0.9%
–-LEAD was at INR 188.95 a kg, down 0.2%
–-ZINC was at INR 326.35 a kg, down 0.5%

--NICKEL was at INR 1,598.10 a kg, down 0.2%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 327.00-INR 334.00

--Copper contract seen at INR 1,185.00-INR 1,215.00
--Lead contract seen at INR 187.00-INR 190.00

--Zinc contract seen at INR 327.00-INR 334.00

--Nickel contract seen at INR 1,580.00-INR 1,610.00

End

 

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

 

Edited by Saji George Titus

 

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