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Informist, Friday, May 29, 2026

By Reshma Ravi

MUMBAI – Futures contracts of copper edged lower on the Multi Commodity Exchange of India on Friday as the rupee strengthened against the dollar. However, the fall in copper prices is also likely to be limited due to strong demand and supply disruptions. 

The rupee ended 0.7% higher at 95.0000 against the dollar Friday. When the rupee appreciates against the dollar, prices of rupee-denominated base metals fall.

However, the fall in COPPER prices is likely to be limited due to strong demand linked to the global artificial intelligence expansion and the rapid building up of the data center infrastructure. "It is becoming increasingly clear that demand for copper is rising structurally. In particular, sustained high investment in data centers for artificial intelligence in the US appears to be opening up a new driver for copper demand," Commerzbank said in a report.

The fall in prices is also likely to be limited due to supply disruptions and tightening exchange inventories, Kedia Advisory said in a note. "...shortages of sulfur and sulfuric acid in Chile forced several refiners to reduce operating capacity, tightening refined copper availability," it said. "declining inventories in London Metal Exchange warehouses, where available copper stocks dropped to a ten-week low of 275,525 metric tons after large volumes were earmarked for delivery," it said.

Progress in talks between the US and Iran eased concerns about slower global economic growth, which limited the losses in copper prices, analysts at Kedia Advisory said. The US and Iran reached an agreement on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, sources told Reuters, ‌though US President Donald Trump it yet to approve it. 

At 1615 IST, on the MCX, the June futures contract of:

--Aluminium was at INR 385.00 a kg, down 0.7%
--COPPER was at INR 1,349.75 a kg, down 0.8%
–-LEAD was at INR 207.35 a kg, down 0.1%
–-ZINC was at INR 366.10 a kg, down 0.4%

--NICKEL was at INR 1,815.40 a kg, down 0.4%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 382.00-INR 388.00

--Copper contract seen at INR 1,340.00-INR 1,370.00
--Lead contract seen at INR 206.00-INR 209.00

--Zinc contract seen at INR 362.00-INR 370.00

--Nickel contract seen at INR 1,780.00-INR 1,860.00

End

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

Edited by Akul Nishant Akhoury

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