Commodity Market Updates, Dec 5: Copper soars to fresh lifetime high; Crude oil futures ease

Crude oil futures

Crude oil futures on Friday, December 5, declined by ₹22 to ₹5,350 per barrel as participants trimmed their positions amid weak demand in the spot market.

On the Multi-Commodity Exchange (MCX), crude oil for January delivery fell by ₹22 or 0.41% to ₹5,350 per barrel in 2,631 lots.

Analysts said the prices fell after participants offloaded their holdings amid weak demand in the spot market.

Globally, West Texas Intermediate crude oil was trading 0.27% lower at $59.51 per barrel, while Brent Crude fell 0.17% to $63.15 per barrel in New York.

Copper futures

Copper futures for December 31 delivery gained 2.15% to a fresh record high of ₹1,096.70 per kilogram on the MCX on Friday.

This rally was driven by supply concerns, including planned production cuts by Chinese smelters, lower output in Chile’s top producers in October, and a weakness in the dollar.

The surge in price also comes after exchange data showed a spike in copper orders from Taiwan and South Korea, along with the possibility of a supply shortage as traders diverted huge volumes to the US due to fears of possible import tariffs.

Similarly, red metal contracts for the January expiry also advanced to an all-time high of ₹1,103.95 per kilogram.

Zinc futures

Zinc prices increased by ₹1.80 to ₹306.80 per kilogram in futures trade amid a pick-up in spot demand.

On the MCX, zinc contracts for January delivery traded higher by ₹1.80 or 0.59% to ₹306.80 per kilogram, with a business turnover of 739 lots.

Marketmen said the widening of positions by participants, following a pick-up in demand from consuming industries, kept zinc prices higher in the futures trade.

Aluminium futures

Aluminium prices rose by 55 paise to ₹280.80 per kilogram in the domestic futures trade as speculators built up fresh positions amid a positive trend in the spot market.

On the MCX, aluminium for delivery in January went up by 55 paise, or 0.2%, to ₹280.80 per kg in a business turnover of 397 lots.

Analysts said fresh positions created by traders amid demand from consuming industries supported aluminium prices in the futures market.