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Informist, Monday, Dec. 8, 2025

--MCX Dec copper contract hits new record high of INR 1,097 per kg

--LME 3-month copper contract hits new record high of $11,671 per tonne 

MUMBAI – Futures contracts of copper hit a new record high on the Multi Commodity Exchange of India on Monday, tracking the fresh peak in the prices of the three-month copper contract on the London Metal Exchange. Prices rose due to a weaker dollar amid rising hope of a rate cut by the US Federal Reserve this week. Prices were also supported by rising supply concerns.

According to the CME's FedWatch tool, 88.4% of Fed fund futures traders are now pricing in a 25-basis-point rate cut in December, while 11.6% of traders anticipate no change in rates. Typically, lower borrowing costs boost construction and manufacturing activities, aiding copper demand.

The dollar index remained broadly weak ahead of an expected rate cut at the Fed's policy decision Wednesday. A weak greenback makes dollar-denominated commodities more appealing for other currency holders, boosting demand.

Signs of supply tightness also supported copper prices. Copper inventories in the Shanghai Futures Exchange declined 9.22% by the end of last week, the exchange's weekly stock report showed on Friday – the second consecutive week of declines, Reuters reported. Supply concerns are also fuelled by mine disruptions and China's major smelters agreeing to slash output by 10%, the report said.

Copper prices have been volatile since US President Donald Trump in February announced plans to place tariffs on the metal in a bid to boost US supply. The decision caused futures in New York to spike above those on the LME, spurring a record surge in US imports and tightening supply in rest of the world.

"Sentiment strengthened further after Citi raised its copper price forecast, projecting an average of $13,000 in Q2 2026, up from $12,000 earlier, with a bull-case target of $15,000," Kedia Advisory said in a note. Citi expects macro-driven fund buying and tightening supply conditions to keep prices supported, it said.

At 1117 IST, the three-month copper contract on the LME hit another high of $11,683 per tonne, up 0.5%. On the MCX, the December contract hit another high at INR 1,102 per kg, up 0.8%.  End

US$1 = INR 90.11

Reported by Shreya Shetty

Edited by Akul Nishant Akhoury

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