LME base metals prices decline d-o-d; Fed makes first interest rate cut this year

• US-China trade talks support SHFE copper prices
• Fed cut signals mixed cues for investors, rupee dips

Base metals prices on the London Metal Exchange (LME) saw negative trends d-o-d, with zinc decreasing by 1.62% to $2,944/tonne (t). Meanwhile, inventories at LME-registered warehouses registered mixed movements d-o-d, with lead recording the highest decline of 1.10%.

Domestic market overview

In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 820,000/t ex-Delhi, down by INR 2,000/t d-o-d. Aluminium Tense scrap remained stable d-o-d, with prices at INR 196,000/t ex-Delhi and INR 198,000/t ex-Chennai.

Other market updates

Fed delivers first rate cut of the year

The US Federal Reserve reduced its key interest rate by a quarter point, marking its first cut of the year and setting the new target range at 4% to 4.25%. Chair Jerome Powell said the balance of risks has shifted towards supporting employment, while inflation pressures remain manageable. Fed officials signalled two more cuts could follow this year, though Powell stressed the central bank is not on a pre-set path. The move drew renewed criticism from President Trump, who has pushed for faster and deeper rate reductions.

Rupee slips below 88 per US dollar on Fed uncertainty

The Indian rupee weakened past the 88 marks against the US dollar on Wednesday, weighed down by broad-based dollar demand and higher US Treasury yields. The move followed the Federal Reserve’s 25 bps rate cut, which left investors parsing mixed signals as Chair Powell’s balanced remarks contrasted with dovish rate projections. The rupee’s decline ended a four-day gaining streak, while Indian equities gained modestly and bond yields inched higher.

Shanghai copper climbs to 5-month high on trade talk optimism

Shanghai (SHFE) copper futures surged to their highest level since March, supported by progress in US-China trade talks and growing expectations of a US Federal Reserve rate cut. Hopes of a broader trade deal, bolstered by a TikTok framework agreement, lifted market sentiment, while a weaker dollar outlook added further support. However, profit-taking led to a slight dip in LME copper after hitting a 15-month peak earlier this week.