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Informist, Tuesday, Jun. 23, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India fell Tuesday, tracking a fall in contracts on the London Metal Exchange because of a rise in the dollar. Prices also fell on worries of potential growth headwinds from expected interest rate hikes by the US Federal Reserve later in the year. Higher interest rates dampen the outlook for growth-sensitive industrial metals by increasing borrowing costs and stifling economic activity.

 

At 1559 IST, the dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.2% at 101.2. A stronger dollar makes dollar-denominated commodities, such as base metals, expensive for holders of other currencies, denting demand.

 

However, the fall in COPPER prices could be cushioned by supply concerns. Copper stockpiles in LME warehouses have fallen more than 10% this month, Daniel Hynes, senior commodity analyst at ANZ Research, said in a note. Much of this is probably because of strong demand from the US. Importers remain concerned that the US will reverse last year's decision not to apply tariffs on refined metal, he said. Adding to the pressure, refined copper output in China rose 2.2% year on year to 1.26 million tonnes, data from the National Bureau of Statistics showed. "Output was supported by higher sulphuric acid by-product prices, which boosted smelter margins and encouraged stronger operating rates," analysts at ING Economics said in a report.

 

Meanwhile, the fall in ALUMINIUM prices is also likely to be limited as the market is expected to remain tight, with the global aluminium deficit set to persist, Ewa Manthey, commodities strategist at ING Economics, said in a report. Prices are likely to be supported as the global market continues to face a deficit of 1.8 million tonnes and inventories remain tight. Despite higher Chinese exports and the ceasefire reducing the risk of further disruptions, lost production has not been restored, prompting ING Economics to maintain its aluminium price forecast of $3,500 per tonne for the third quarter of 2026 and $3,400 per tonne for the fourth quarter, Manthey said.

 

At 1600 IST, on the MCX, the June futures contract of:

--Aluminium was at INR 346.40 a kg, down 2.2%
--Copper was at INR 1,296.20 a kg, down 1.5%
–-LEAD was at INR 204.15 a kg, down 0.1%
–-ZINC was at INR 362.50 a kg, down 2%

 

The July futures contract of NICKEL was at INR 1,675.10 a kg, down 2%.

 

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

--Copper contract seen at INR 1,280.00-INR 1,310.00
--Lead contract seen at INR 202.00-INR 205.00

--Zinc contract seen at INR 360.00-INR 365.00

--Nickel contract seen at INR 1,640.00-INR 1,700.00

 

End

 

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

 

Edited by Rajeev Pai

 

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