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Informist, Friday, Mar. 20, 2026

By Ashutosh Pati

MUMBAI – Futures contracts of copper and aluminium recovered Friday on the Multi Commodity Exchange of India and the London Metal Exchange after a sharp sell-off in the previous session. Aluminium prices were supported due to concerns about supply from the Gulf amid the ongoing military conflict between the US and Iran.

"Base metals are trading on a mixed footing, with copper near $12,137/ton and aluminium up nearly 1% at $3,275/ton, as the metals pack stages a modest rebound following sharp loss earlier in the week," Kotak Securities said in a report. "The rebound follows easing tensions in the Middle East (West Asia), with reassurances from the US and Israel helping to stabilise sentiment after the recent risk-off move," the brokerage said. Despite this recovery, both metals remain down close to 4% week-to-date, reflecting persistent macro and geopolitical pressures, it said.

Copper prices fell sharply in the previous session amid rising inventories across exchanges and weak demand in China. Hawkish outlook from the US Federal Reserve and the impact of rising energy prices on global economic growth also weighed on sentiment. "...the broader outlook remains cautious, as elevated energy prices continue to weigh on global growth and manufacturing activity. Copper is on track for a third consecutive weekly decline, pressured by rising exchange inventories and softer demand signals, particularly from China," the brokerage said.

The US Federal Open Market Committee Wednesday said it sees only one rate cut for the rest of the year. The US FOMC left the federal funds target range unchanged at 3.50-3.75%, as was widely expected. The summary of economic projections released along with the rate decision showed only one 25-bps rate reduction in the policy rate in 2026 as per the median of expectations of Fed officials, after 100 bps of easing in 2024 and 75 bps in 2025.

Meanwhile, higher aluminium prices are weighing on demand in China, the largest consumer of the metal. "Inventories at the SHFE are filling up with the metal, suggesting that buyers are holding back...this, in turn, is likely to prompt local aluminium producers to ramp up their exports, which would ease the supply situation outside of China," Thu Lan Nguyen, head of FX and commodity research at Commerzbank AG, said in a report.

At 1814 IST, on the MCX, the March futures contract of:

--ALUMINIUM was at INR 335.75 a kg, up 1.6%
--Copper was at INR 1,115.95 a kg, up 0.4%
–-LEAD was at INR 187.75 a kg, up 0.8%
–-ZINC was at INR 309.60 a kg, up 1.0%

The April futures contract of NICKEL was at INR 1,557.10 a kg, up 0.3%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 332.00-INR 337.00

--Copper contract seen at INR 1,100.00-INR 1,135.00
--Lead contract seen at INR 186.00-INR 189.00

--Zinc contract seen at INR 305.00-INR 311.00

--Nickel contract seen at INR 1,520.00-INR 1,585.00

End

US$1 = INR 93.71

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

Edited by Deepshikha Bhardwaj

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