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Informist, Wednesday, Mar. 18, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange Wednesday due to weak demand in China and rising inventories. Market participants remained cautious ahead of the US Federal Open Market Committee's monetary policy decision later in the day.

 

"The broader (metals) complex continues to reflect weak demand dynamics, particularly in China, where aluminium inventories have surged past 1.3 million tonnes, marking the highest level since 2020 and indicating subdued consumption despite seasonal tailwinds," Kotak Securities said in a report. Higher prices due to supply disruptions from West Asia have further constrained buying interest, it said. Copper is also facing downward pressure, with LME inventories rising to multi-year highs, signalling a weak start to seasonal demand.

 

Copper inventories at warehouses monitored by the Shanghai Futures Exchange rose 8,313 tonnes to 433,458 tonnes in the week ended Friday and aluminium stocks rose 21,927 tonnes to 416,425 tonnes. Zinc stocks rose 12,427 tonnes to 147,348 tonnes in the week ended Friday and lead inventories rose 9,220 tonnes to 76,049 tonnes.

 

However, concerns about a prolonged supply disruption limited the losses in aluminium prices. The closure of the Strait of Hormuz, a critical route for West Asian producers to transport aluminium and raw materials, has led major producers to cut output. If the disruptions persist, additional curtailments could begin within the next one to two weeks as inventories are depleted, according to Ewa Manthey, commodities strategist at ING Economics. Aluminium smelters in the Gulf region rely on continuous imports of raw materials such as alumina and usually hold around three to four weeks' worth of inventory.

 

At 1637 IST, on the MCX, the March futures contract of:

--Aluminium was at INR 338.75 a kg, down 0.6%
--COPPER was at INR 1,169.00 a kg, down 0.6%
–-LEAD was at INR 187.15 a kg, down 0.4%
–-ZINC was at INR 317.05 a kg, down 0.7%

--NICKEL was at INR 1,580.00 a kg, down 0.6%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 336.00-INR 341.00

--Copper contract seen at INR 1,155.00-INR 1,195.00
--Lead contract seen at INR 185.00-INR 189.00

--Zinc contract seen at INR 314.00-INR 320.00

--Nickel contract seen at INR 1,560.00-INR 1,630.00

End

 

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

 

Edited by Saji George Titus

 

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