Informist, Monday, Aug. 18, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals on the Multi Commodity Exchange of India edged lower Monday, tracking a fall in contracts on the London Metal Exchange because of a rise in the dollar index. Market sentiment was also hurt by weak economic data from China and rising inventories at the Shanghai Futures Exchange-monitored warehouses.

The MCX Monday launched NICKEL futures contract, aimed at efficient price discovery and encouraging greater value-chain participation across the country. The newly launched nickel contract with September expiry opened at INR 1,340 per kilogram on MCX. The exchange will accept only the London Metal Exchange-approved primary nickel cathodes with a minimum purity of 99.80% as good delivery, as per a statement from the exchange.

At 1635 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 97.98. A stronger dollar makes dollar-denominated commodities such as base metals expensive for those holding other currencies, denting demand.

COPPER inventories at warehouses registered with the Shanghai Futures Exchange rose by 4,428 tonnes on week to 86,361 tonnes in the week ended Friday. ALUMINIUM stocks rose by 7,039 tonnes on week to 120,653 tonnes. ZINC stocks rose by 10,886 tonnes to 76,803 tonnes and LEAD inventories grew by 2,510 tonnes to 64,844 tonnes in the week ended Friday.

Meanwhile, China's industrial production growth slowed to 5.7% on year in July from 6.8% in June, according to data from the National Bureau of Statistics. "Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year," Lynn Song, chief economist, Greater China at ING, said in a report. "After a strong start, several months of cooling momentum suggest that the economy may need further policy support," Song added. China is the top consumer and producer of industrial metals and weak economic growth in the country could hurt demand for metals.

Aluminium contracts traded in the red amid concerns about demand after the US extended a 50% import levy on more derivative products of steel and aluminium by adding it to the list of goods subject to the levies. The Bureau of Industry and Security added 407 product codes to the Harmonized Tariff Schedule of the US, which identifies the goods to be hit with the additional duties on the steel and aluminium content of those products, the Commerce Department said Friday. The levies will take effect Monday.

At 1651 IST, on the MCX, the August futures contract of:
-–Aluminium was at INR 251.65 a kg, down 1.3%
–-Copper was at INR 882.40 a kg, down 0.6%

–-Lead was at INR 179.35 a kg, down 0.5%
–-Zinc was at INR 265.95 a kg, down 1.7%

The September futures contract of Nickel was at INR 1,320.50, down 2.3%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 248.40-INR 256.00
--Copper contract seen at INR 877.00-INR 896.00
--Lead contract seen at INR 178.95-INR 181.35
--Zinc contract seen at INR 262.10-INR 271.50

--Nickel contract seen at INR 1,300.00-INR 1,340.00

End

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

Edited by Subhojit Sarkar

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