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Informist, Friday, Mar. 13, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of most base metals edged lower on the Multi Commodity Exchange of India on Friday, tracking a fall in contracts on the London Metal Exchange as the dollar index rose above 100 to its highest level in over three months. However, the fall in aluminium prices was limited as supply has tightened due to the closure of the Strait of Hormuz, according to analysts.

 

At 1651 IST, the dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.4% at 100.17. A stronger dollar makes dollar-denominated commodities, such as base metals, expensive for holders of other currencies, denting demand for them. The dollar index rose above 100 as investors sought safe-haven assets amid a rise in energy prices due to the widening conflict in West Asia.

 

"Base metals are trading broadly lower (on LME), with copper, aluminium and zinc declining over 1%, while lead is down about 0.5%. Copper hovers near $12,830/ton, extending losses for a third session as a stronger dollar and surging oil prices amid the Middle East (West Asia) conflict pressure sentiment," Kotak Securities said in a report.

 

ALUMINIUM prices on the LME, which recently touched a four-year high on risks of smelters shutting down, have eased to around $3,460 per tonne. With the Strait of Hormuz effectively closed and regional disruptions mounting, prompting Aluminium Bahrain BSC to declare force majeure, tightening physical supply and rising premiums suggest downside may remain limited despite near-term price corrections, the brokerage added.

 

West Asia accounts for nearly 9% of global aluminium production. The closure of the Strait of Hormuz, a critical route for West Asian producers to transport the metal and raw materials, has led to major producers cutting output. "The amount requested for withdrawal of the metal from LME warehouses rose this week to its highest level since spring 2024. The requests were primarily directed at warehouses in Malaysia, which suggests that the supply situation is particularly tight in Asia," Thu Lan Nguyen, head of FX and commodity research at Commerzbank AG said in a report.

 

At 1617 IST, on the MCX, the March futures contract of:

--Aluminium was at INR 347.45 a kg, down 0.7%
--COPPER was at INR 1,192.30 a kg, down 0.8%
–-LEAD was at INR 188.65 a kg, up 0.2%
–-ZINC was at INR 324.65 a kg, down 0.2%

--NICKEL was at INR 1,598.00 a kg, down 0.3%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 342.00-INR 350.00

--Copper contract seen at INR 1,175.00-INR 1,205.00
--Lead contract seen at INR 187.00-INR 190.00

--Zinc contract seen at INR 320.00-INR 328.00

--Nickel contract seen at INR 1,600.00-INR 1,650.00

End

 

US$1 = INR 92.45

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

 

Edited by Ashish Shirke

 

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