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Informist, Friday, Jun. 5, 2026

By Reshma Ravi

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India Friday as the rupee strengthened against the dollar, analysts said. Copper prices also fell due to uncertainty surrounding US-Iran peace talks and renewed hostilities in West Asia, which raised concern about inflation and global economic growth. However, the fall in copper prices could be limited due to tightening exchange inventories.

The rupee ended 0.9% higher at 94.9450 against the dollar Friday. When the rupee appreciates against the dollar, prices of rupee-denominated base metals fall. 

COPPER prices fell as tensions in West Asia dampened hopes of a US-Iran peace deal amid rising inflation and interest rate hike fears. On Thursday, the Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon and Israel said it would not withdraw troops from the country, undermining US President Donald Trump's efforts to halt fighting there to forge peace with Tehran.

"Copper declined as expectations for tighter monetary policy in response to an energy-driven inflation shock weighed on demand prospects. A prolonged Middle East (West Asia) conflict and the near-closure of the Strait of Hormuz also continued to pressure global growth expectations," analysts at Kedia Advisory said in a note.

However, the fall in copper prices could be limited due to tightening exchange inventories. London Metal Exchange copper inventories declined to 379,975 tonnes, the lowest level since early April. Available stocks continued to shrink as large volumes were earmarked for withdrawal, reflecting tighter near-term physical availability, analysts said.

The fall in ALUMINIUM prices was also limited due to ongoing concerns over tightening global supplies. The market remained supported by persistent supply disruptions and historically low inventory levels, which continue to underpin the broader price outlook. "London Metal Exchange aluminium inventories declined to 335,450 tonnes, the lowest level in nearly four years, while the cash aluminium contract traded at a premium of $116.50 per tonne over the three-month contract, the highest level in at least 17 years, highlighting significant near-term market tightness," analysts said.  

At 1626 IST, on the MCX, the June futures contract of:

--Aluminium was at INR 387.40 a kg, down 0.7%
--Copper was at INR 1,359.50 a kg, down 1%
–-LEAD was at INR 206.30 a kg, down 0.3%
–-ZINC was at INR 369.65 a kg, down 0.6%

--NICKEL was at INR 1,796.80 a kg, down 0.7%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 384.00-INR 391.00

--Copper contract seen at INR 1,350.00-INR 1,370.00
--Lead contract seen at INR 204.00-INR 208.00

--Zinc contract seen at INR 365.00-INR 373.00

--Nickel contract seen at INR 1,760.00-INR 1,830.00

End

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

Edited by Avishek Dutta

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