Copper, zinc, aluminium prices fall on MCX on concerns over demand in China

Major metals including copper, aluminium and zinc settled lower on July 24 as weakness in China’s economy hinted at a fall in demand for the industrial metals. A key Communist Party meeting last week also dented the market sentiment as officials failed to provide catalysts to support metals demand. Data shows that the LMEX Metals Index slipped to its lowest since April 2024.

Copper

Copper prices slipped by 0.86% to settle at ₹807 on the Multi Commodity Exchange of India (MCX) on Wednesday. The metal producers in China exported a record 157,751 tons of copper in June as domestic consumption remained weak. On Thursday morning, the copper prices tanked 1.77% to ₹785.25.

London Metal Exchange (LME) copper inventory rose to 236,700 tons, the highest level since September 2021. In the international market, copper futures for September delivery fell 1.2% settling at $4.11 a pound on Comex. According to Dow Jones Market Data, it settled at its lowest since April 2.

Aluminium

Aluminium prices settled 0.83% lower at ₹213.95 on Wednesday. Investors have been expecting signs from China that it would take some steps to address the property slump, which is a primary driver of metals demand. However, they haven't received any signal from the Chinese government. The aluminium prices on MCX this morning slumped over a percent to ₹210.75.

For the first half of the year, China recorded a 7% increase in aluminium output at 21.55 million metric tons. Last month’s production was the highest in nearly a decade.

Zinc

Zinc prices tumbled by 1.61% closing at ₹259.5 on July 24. China's June refined zinc production rose by 9,700 metric tons MoM to 545,800 metric tons, however, it was down 1.2% YoY. Zinc prices on MCX on July 25 morning sank 1.6% to ₹249.5.

A 9% rebound in LME stock, the highest level in three months, indicates a surplus supply of metal in the market.