{"id":75500,"date":"2025-10-29T15:27:32","date_gmt":"2025-10-29T09:57:32","guid":{"rendered":"https://www.5paisa.com/finschool/?post_type=markets\u0026#038;p=75500"},"modified":"2025-10-29T15:28:28","modified_gmt":"2025-10-29T09:58:28","slug":"copper-and-aluminium","status":"publish","type":"markets","link":"https://www.5paisa.com/finschool/course/currency-commodity-government-securities-course/copper-and-aluminium/","title":{"rendered":"Copper and Aluminium"},"content":{"rendered":"\u003cdiv data-elementor-type=\u0022wp-post\u0022 data-elementor-id=\u002275500\u0022 class=\u0022elementor elementor-75500\u0022\u003e\u003csection class=\u0022elementor-section elementor-top-section elementor-element elementor-element-23ba90b elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\u0022 data-id=\u002223ba90b\u0022 data-element_type=\u0022section\u0022\u003e\u003cdiv class=\u0022elementor-container 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data-title-link=\u0022study-tab\u0022\u003e\u003cp\u003e\u003cdiv class=\u0027white\u0027 style=\u0027background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;\u0027\u003e\u003cdiv id=\u0027text_slider\u0027 class=\u0027owl-carousel sa_owl_theme owl-pagination-true\u0027 data-slider-id=\u0027text_slider\u0027 style=\u0027visibility: visible;visibility:visible;\u0027\u003e\u003cdiv id=\u0027text_slider_slide01\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027The-Sumitomo-Copper-Scandal\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e14.1 \u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eThe Sumitomo Copper Scandal\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cem\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Exams-rafiki.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Exams-rafiki.svg\u0022 /\u003e\u003c/a\u003e\u003c/em\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e Isha, I came across something called the Sumitomo Copper Scandal. What was that about?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Ah, that’s one of the most famous cases of market manipulation. A trader named Hamanaka tried to control global copper prices by hoarding physical copper and building huge futures positions.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e Sounds risky. Did it work?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e For a while, yes. But when global supply surged—especially from China—his strategy collapsed. Sumitomo lost billions.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e So it’s a lesson in overconfidence?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Exactly. It shows why risk management and transparency matter more than dominance in any market.\u003c/p\u003e\u003cp\u003eIn the world of commodities, few stories are as infamous—or instructive—as the Sumitomo Copper Scandal. This event, which unfolded in Japan during the mid-1990s, remains one of the most dramatic examples of rogue trading and market manipulation. It’s a cautionary tale that continues to echo through trading floors and risk management discussions even today.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eThe Setup: Sumitomo’s Copper Empire\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003eSumitomo Corporation, a major Japanese conglomerate, was deeply involved in global commodity trading. Among its divisions, copper trading stood out—both for its scale and its influence. At the centre of this operation was Yasuo Hamanaka, Sumitomo’s chief copper trader, often referred to as “Mr. Copper” in industry circles.\u003c/li\u003e\u003cli\u003eHamanaka’s strategy was aggressive and far-reaching. He purchased physical copper from global markets and stored it in warehouses across Japan, Europe, and other key ports. At one point, his spot market holdings represented nearly 5% of the world’s copper reserves—an astonishing figure that gave him significant control over supply.\u003c/li\u003e\u003cli\u003eSimultaneously, Hamanaka built massive long positions in copper futures on the London Metal Exchange (LME). Because the LME did not publish open interest data at the time, the true extent of his exposure remained hidden from other market participants.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eThe Manipulation: How the Strategy Worked\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eWhenever other traders attempted to short copper, Hamanaka would step in and buy aggressively. Backed by Sumitomo’s deep pockets, he could absorb large volumes, pushing prices higher. This created a feedback loop:\u003c/p\u003e\u003cul\u003e\u003cli\u003eRising copper prices squeezed short sellers.\u003c/li\u003e\u003cli\u003eThose who defaulted on futures contracts had to source physical copper—often from Sumitomo—at a premium.\u003c/li\u003e\u003cli\u003eSumitomo profited both from futures and spot sales.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eThis dual-market dominance allowed Hamanaka to profit handsomely and maintain control over copper pricing. For nearly a decade, the strategy worked. Sumitomo became a dominant force in the copper market, and Hamanaka was hailed as a trading genius.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eThe Collapse: When Supply Overwhelmed Strategy\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003eIn the early 1990s, China ramped up its copper production, flooding the global market with supply. Prices began to decline. Hamanaka, heavily leveraged and deeply exposed, struggled to unwind his positions. Instead of cutting losses, he borrowed more to maintain his long exposure—hoping for a rebound.\u003c/li\u003e\u003cli\u003eBut the market didn’t cooperate. Copper prices continued to fall, and the sheer size of his positions made it impossible to exit without triggering further declines. The result was catastrophic: Sumitomo incurred losses estimated at $5 billion, and the scandal led to lawsuits, regulatory scrutiny, and a complete overhaul of internal risk controls.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eLessons Learned\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003eThe Sumitomo Copper Scandal is more than a story of one trader’s downfall—it’s a masterclass in the importance of risk management, transparency, and position sizing. It highlights how unchecked leverage and lack of oversight can bring down even the most powerful institutions.\u003c/li\u003e\u003cli\u003eAs we move into the fundamentals of copper trading, keep this case in mind. Markets reward discipline, not dominance. And no position—no matter how profitable—should ever be immune to scrutiny.\u003c/li\u003e\u003c/ul\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide02\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Copper-Basics\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2\u003e\u003cstrong\u003e\u003cb\u003e14.2 –\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eCopper Basics: Structure, Usage, and Trading on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003c/h2\u003e\u003ch3 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/New-entries-rafiki.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/New-entries-rafiki.svg\u0022 /\u003e\u003c/a\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e That scandal was intense. But what makes copper so important today?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Copper is everywhere—from EVs and telecom to construction and renewable energy. It’s the third most consumed metal globally.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e And it’s traded on MCX too?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Yes, in two formats—standard and mini contracts. High liquidity, strong industrial demand, and macro sensitivity make it a favorite among traders.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e So it reacts to global data like PMI and Fed decisions?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Exactly. And its technical charts are very responsive, which helps in short-term setups.\u003c/p\u003e\u003cp\u003eCopper is one of the most actively traded base metals on the Multi Commodity Exchange (MCX). As a base metal, it belongs to the category of industrial-use metals that are not considered precious—unlike gold or silver. Its high liquidity, with daily turnover exceeding ₹2,000 crore across roughly 55,000 lots, places it in the same league as crude oil and gold in terms of market participation.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eWhy Copper Matters\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eGlobally, copper ranks as the third most consumed metal, following steel and aluminium. Its price is tightly linked to macroeconomic cycles, infrastructure spending, and industrial output. Copper’s versatility stems from its exceptional electrical conductivity, making it indispensable in power transmission and electronics.\u003c/p\u003e\u003cp\u003eFor instance, while most electric vehicles use permanent magnet motors, Tesla’s Model 3 rear-wheel drive variant uses an induction motor with copper windings, reducing reliance on rare earth materials. This design choice highlights copper’s strategic importance in the clean energy transition.\u003c/p\u003e\u003cp\u003eBeyond EVs, copper is used extensively in:\u003c/p\u003e\u003cul\u003e\u003cli\u003eUrban infrastructure and construction (e.g., copper pipes and roofing)\u003c/li\u003e\u003cli\u003eElectrical wiring and switchgear\u003c/li\u003e\u003cli\u003eIndustrial machinery and heat exchangers\u003c/li\u003e\u003cli\u003eRailway electrification and signaling systems\u003c/li\u003e\u003cli\u003eTelecom networks and data centres\u003c/li\u003e\u003cli\u003eRenewable energy installations (solar and wind)\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eOne lesser-known but fascinating application is in antimicrobial surfaces. Hospitals in Europe and Japan have begun using copper alloy door handles and bed rails to reduce infection rates—thanks to copper’s natural ability to kill bacteria on contact.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eGlobal Demand Snapshot\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAs of recent estimates, global refined copper demand exceeds 25 million metric tons annually, with China accounting for nearly 50% of consumption. India’s demand is also rising, driven by electrification, housing, and telecom expansion. However, supply disruptions—such as strikes in Chilean mines or export curbs in Africa—can cause sharp price swings.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eTrading Copper on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eCopper is traded in two contract formats on MCX: the standard Copper Futures and the Copper Mini Futures. Both are settled in cash and follow similar expiry rules, but differ in lot size and margin requirements.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eStandard Copper Contract\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Quote\u003c/b\u003e\u003c/strong\u003e: Per kilogram\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 1 metric ton (1,000 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTick Size\u003c/b\u003e\u003c/strong\u003e: ₹0.05\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹50 (₹0.05 × 1,000 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eExpiry\u003c/b\u003e\u003c/strong\u003e: Last trading day of the month\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDelivery Unit\u003c/b\u003e\u003c/strong\u003e: 10 metric tons\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eLet’s say copper is trading at ₹748.20/kg in October 2025. The contract value would be:\u003c/p\u003e\u003cp\u003eAssuming a margin requirement of 7.5%, the NRML margin would be:\u003c/p\u003e\u003cp\u003eFor intraday trades (MIS), the margin would be roughly half—around ₹28,000.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eCopper Mini Contract\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Quote\u003c/b\u003e\u003c/strong\u003e: Per kilogram\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 250 kg\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTick Size\u003c/b\u003e\u003c/strong\u003e: ₹0.05\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹12.50 (₹0.05 × 250 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eExpiry\u003c/b\u003e\u003c/strong\u003e: Last trading day of the month\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDelivery Unit\u003c/b\u003e\u003c/strong\u003e: 10 metric tons\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eIf the Copper Mini contract is trading at ₹749.00/kg, the contract value would be:\u003c/p\u003e\u003cp\u003eWith a margin requirement of 8%, the NRML margin would be:\u003c/p\u003e\u003cp\u003eThis lower exposure makes the mini contract ideal for retail traders and those testing short-term strategies.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eTrading Strategy Tip\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eCopper’s high liquidity and sensitivity to global economic indicators make it an excellent candidate for technical analysis. Chart patterns, volume spikes, and moving averages work well on copper, especially around macro events like PMI releases, Fed rate decisions, or Chinese industrial data.\u003c/p\u003e\u003ch3 style=\u0022text-align: left\u0022\u003e\u003c/h3\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide03\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Aluminium-Basics\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e14.3 \u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eAluminium Basics: Abundance, Applications, and Trading Dynamics\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp style=\u0022text-align: left\u0022\u003e\u003cem\u003e\u003cspan style=\u0022color: #000080\u0022\u003e\u003cstrong\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Search-engines-bro.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Search-engines-bro.svg\u0022 /\u003e\u003c/a\u003e\u003c/strong\u003e\u003c/span\u003e\u003c/em\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eVarun: \u003c/strong\u003eIsha, what about aluminium? I always thought of it as packaging material.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eIsha:\u003c/strong\u003e It’s much more than that. Aluminium is used in aerospace, EVs, construction, and electronics. It’s lightweight, corrosion-resistant, and highly recyclable.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eVarun:\u003c/strong\u003e So it’s industrially critical?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eIsha: \u003c/strong\u003eAbsolutely. India’s demand is rising fast, and global production is over 60 million metric tons. But prices can swing due to energy costs and policy changes.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eVarun:\u003c/strong\u003e Like the aluminium can shortage in India?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eIsha:\u003c/strong\u003e Exactly. Even with abundant supply, local bottlenecks can create trading opportunities.\u003c/p\u003e\u003cp\u003eAluminium is one of the most widely used base metals in the world and a highly liquid commodity on MCX. While many associate it with kitchen foil or beverage cans, its industrial significance goes far beyond. From aerospace to electronics, aluminium plays a critical role in modern infrastructure and manufacturing.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eAbundance and Properties\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAluminium is the third most abundant element in the Earth’s crust, making up nearly 8% of its composition—after oxygen and silicon. This abundance ensures that supply disruptions are rare, and prices are more influenced by energy costs and demand cycles than scarcity. One of aluminium’s most valuable properties is its resistance to corrosion, which makes it ideal for outdoor structures, marine applications, and long-lasting components.\u003c/p\u003e\u003cp\u003eHowever, aluminium production is extremely energy-intensive. It takes approximately 17.4 megawatt-hours of electricity to produce just one metric ton. This is why power costs form a significant portion of manufacturing expenses for companies like Hindalco and Vedanta. On the flip side, recycling aluminium requires only 5% of the energy, making it one of the most sustainable metals in circulation.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIndustrial Applications\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAluminium’s versatility is unmatched. It’s used in:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eAerospace\u003c/b\u003e\u003c/strong\u003e: A Boeing 747 uses over 70,000 kg of aluminium in its structure.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eAutomotive\u003c/b\u003e\u003c/strong\u003e: Lightweight frames and engine components.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eConstruction\u003c/b\u003e\u003c/strong\u003e: Windows, roofing, and structural panels.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eElectronics\u003c/b\u003e\u003c/strong\u003e: Smartphone casings and heat sinks.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDefense and Railways\u003c/b\u003e\u003c/strong\u003e: Armored vehicles and high-speed train bodies.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePharmaceuticals and Packaging\u003c/b\u003e\u003c/strong\u003e: Foils, blister packs, and containers.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eIndia’s demand for aluminium is growing rapidly, driven by infrastructure projects, EV adoption, and smart city initiatives. Domestic consumption is estimated at \u003cstrong\u003e\u003cb\u003e2 million \u003c/b\u003e\u003c/strong\u003emetric tons annually, with a significant portion met through imports.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eGlobal Market Trends (2025)\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eAs per recent industry reports, global aluminium production in 2025 is projected to reach 60 million metric tons, up from 56 million in 2015. Demand is keeping pace, especially from China, Southeast Asia, and India. However, prices have remained volatile due to energy costs, geopolitical tensions, and trade policies.\u003c/p\u003e\u003cp\u003eHere’s a snapshot of global aluminium trends:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eProduction Growth\u003c/b\u003e\u003c/strong\u003e: CAGR of ~6% over the last decade.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDemand Stability\u003c/b\u003e\u003c/strong\u003e: Closely matches supply, minimizing inventory build-up.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Volatility\u003c/b\u003e\u003c/strong\u003e: Average price in 2025 ranges from $2,580/MT in Chinato $3,095/MT in Germany, reflecting regional disparities.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eTrading Aluminium on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAluminium is traded in two formats on MCX:\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eStandard Aluminium Contract\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Quote\u003c/b\u003e\u003c/strong\u003e: Per kilogram\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 1 metric ton (1,000 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTick Size\u003c/b\u003e\u003c/strong\u003e: ₹0.05\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹50\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eExpiry\u003c/b\u003e\u003c/strong\u003e: Last trading day of the month\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDelivery Unit\u003c/b\u003e\u003c/strong\u003e: 10 metric tons\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eExample: If aluminium is trading at ₹215.40/kg, the contract value is:\u003c/p\u003e\u003cp\u003eWith a margin requirement of \u003cstrong\u003e\u003cb\u003e8%\u003c/b\u003e\u003c/strong\u003e, NRML margin would be ₹17,232.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eAluminium Mini Contract\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 250 kg\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹12.50\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMargin\u003c/b\u003e\u003c/strong\u003e: ~4.5% for MIS, ~9% for NRML\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eThis mini version is ideal for retail traders and short-term strategies.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eAluminium Fundamentals: A 2025 Snapshot\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eAluminium remains one of the most actively traded base metals on MCX, prized for its liquidity, industrial relevance, and responsiveness to global macro trends. While long-term fundamentals are important, most traders hold aluminium positions for just a few days—making it more practical to focus on price dynamics, technical setups, and short-term supply-demand shifts.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eReal-World Example: Aluminium Can Shortage in India (2025)\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eIn April 2025, India’s beverage industry faced a major disruption due to a shortage of aluminium cans, triggered by new BIS certification rules. The Brewers Association of India estimated a shortfall of 12–13 crore units of 500 ml cans, which account for nearly 20% of beer sales nationwide. This supply crunch was not due to lack of raw aluminium, but due to bottlenecks in domestic manufacturing and import approvals.\u003c/p\u003e\u003cp\u003eThis incident highlights a key principle in aluminium trading: price is not just about global supply—it’s about regional bottlenecks, energy costs, and policy shifts. Even with abundant global production, local disruptions can create short-term price spikes and trading opportunities.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eGlobal Trends in 2025\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eAccording to the Aluminium Global Industry Report:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003eGlobal productionis projected to exceed 60 million metric tons, with steady growth from Southeast Asia and the Middle East.\u003c/li\u003e\u003cli\u003eConsumptionis keeping pace, driven by EVs, solar infrastructure, and packaging.\u003c/li\u003e\u003cli\u003ePriceshave rebounded from their 2020 lows, averaging $2,580/MT in China and $3,095/MT in Europe, reflecting regional energy costs and tariffs.\u003c/li\u003e\u003cli\u003eIndia’s demand is estimated at 2.2 million metric tons, with imports still playing a major role due to limited domestic smelting capacity.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eTrading Insight\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eThis kind of event-driven volatility—like the aluminium can shortage—can be spotted early through news flow and inventory data. For short-term traders, it’s a reminder that technical analysis works best when paired with real-world context. A sudden spike in demand from packaging or auto sectors, or a policy change like tariffs or certification rules, can shift prices even if global supply remains stable.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide04\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Aluminium-Contracts-on-MCX\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e14.4 \u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eAluminium Contracts on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Warning-rafiki.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Warning-rafiki.svg\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e Isha, I’m thinking of trading aluminium. What are the contract options?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e MCX offers two: the standard contract with 5 metric tons and the mini with 1 metric ton. Both are quoted per kg and settled monthly.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e So the mini is better for retail traders?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Yes. Lower margins, smaller tick value, and manageable exposure. Great for short-term strategies and learning the ropes.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e And the standard one suits bigger players?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Exactly. It offers deeper liquidity and higher tick value—ideal for institutions and high-volume traders.\u003c/p\u003e\u003cp\u003eAluminium is a popular base metal on MCX, offering two distinct futures contracts: the Standard Aluminium Contract and the Aluminium Mini Contract. Both are quoted per kilogram and settled monthly, but they differ significantly in lot size, margin requirements, and tick value—making them suitable for different types of traders.\u003c/p\u003e\u003cp\u003eLet’s break down each contract and understand how they work in practice.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eStandard Aluminium Contract (5 MT)\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eThis is the larger of the two contracts and is typically favoured by institutional traders or high-volume participants. The daily traded value averages around ₹375 crore, and on active days, it can exceed ₹500 crore. While not as large as gold or crude oil, aluminium still offers excellent liquidity and tight spreads.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eContract Specifications:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003ctable\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eParameter\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eValue\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003ePrice Quote\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003ePer kilogram\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eLot Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e5 metric tons (5,000 kg)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eTick Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eP\u0026amp;L per Tick\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05 × 5,000 = ₹250\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eExpiry\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003eLast trading day of the month\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eDelivery Unit\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e10 metric tons\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/table\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eExample (October 2025):\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eLet’s say aluminium is trading at ₹262.60/kg. The contract value would be:\u003c/p\u003e\u003cp\u003eIf the price moves by one tick (₹0.05), your profit or loss would be:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eMargin Requirements:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eNRML (Overnight)\u003c/b\u003e\u003c/strong\u003e: ~5.6% → ₹73,528\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMIS (Intraday)\u003c/b\u003e\u003c/strong\u003e: ~2.8% → ₹36,764\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eAluminium Mini Contract (1 MT)\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eThis contract is designed for retail traders and those looking for smaller exposure. It’s ideal for short-term strategies and technical setups, with manageable risk and lower capital requirements.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eContract Specifications:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003ctable\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eParameter\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eValue\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003ePrice Quote\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003ePer kilogram\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eLot Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e1 metric ton (1,000 kg)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eTick Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eP\u0026amp;L per Tick\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05 × 1,000 = ₹50\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eExpiry\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003eLast trading day of the month\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eDelivery Unit\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e10 metric tons\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/table\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eExample \u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eIf aluminium mini is trading at ₹262.60/kg, the contract value is:\u003c/p\u003e\u003cp\u003eA single tick movement gives:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eMargin Requirements:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eNRML\u003c/b\u003e\u003c/strong\u003e: ~5.7% → ₹14,968\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMIS\u003c/b\u003e\u003c/strong\u003e: ~2.8% → ₹7,484\u003c/li\u003e\u003c/ul\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide05\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Key-Takeaway\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2\u003e\u003cstrong\u003e\u003cb\u003e14.5 \u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eKey Takeaway\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eThe Sumitomo Copper Scandal highlights the dangers of unchecked leverage and market manipulation.\u003c/li\u003e\u003cli\u003eCopper is a vital industrial metal, used in EVs, infrastructure, electronics, and renewable energy.\u003c/li\u003e\u003cli\u003eCopper demand is macro-sensitive, reacting to global data like PMI, Fed decisions, and Chinese output.\u003c/li\u003e\u003cli\u003eMCX offers standard and mini copper contracts, with different lot sizes and margin requirements.\u003c/li\u003e\u003cli\u003eAluminium is the most abundant industrial metal, used across aerospace, construction, packaging, and electronics.\u003c/li\u003e\u003cli\u003eAluminium production is energy-intensive, making prices sensitive to power costs and policy shifts.\u003c/li\u003e\u003cli\u003eIndia’s aluminium demand is rising, driven by infrastructure, EVs, and smart city projects.\u003c/li\u003e\u003cli\u003eMCX aluminium contracts come in standard (5 MT) and mini (1 MT) formats, catering to different trader profiles.\u003c/li\u003e\u003cli\u003eEvent-driven volatility—like the 2025 aluminium can shortage—can create short-term trading opportunities.\u003c/li\u003e\u003cli\u003eBoth copper and aluminium are excellent for technical analysis, offering liquidity, responsiveness, and macro relevance.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u0026nbsp;\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide06\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Fun-Activity\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2\u003e\u003cstrong\u003e\u003cb\u003e14.6 \u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eFun Activity\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eFill in the blanks:\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003eCopper Mini contract has a tick size of ₹0.05 and a lot size of 250 kg. → P\u0026amp;L per tick = _______\u003c/li\u003e\u003cli\u003eAluminium Mini contract has a tick size of ₹0.05 and a lot size of 1,000 kg. → P\u0026amp;L per tick = _______\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cstrong\u003eAnswers:\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003e₹0.05 × 250 = ₹12.50\u003c/li\u003e\u003cli\u003e₹0.05 × 1,000 = ₹50\u003c/li\u003e\u003c/ol\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003cscript type=\u0027text/javascript\u0027\u003ejQuery(document).ready(function()  {jQuery(\u0027#text_slider\u0027).owlCarousel({items  :  1,smartSpeed  :  400,autoplay  :  false,autoplayHoverPause  :  false,smartSpeed  :  400,fluidSpeed  :  400,autoplaySpeed  :  400,navSpeed  :  400,dotsSpeed  :  400,dotsEach  :  1,loop  :  false,nav  :  true,navText  :  [\u0027Previous\u0027,\u0027Next\u0027],dots  :  true,responsiveRefreshRate  :  200,slideBy  :  1,mergeFit  :  true,autoHeight  :  true,mouseDrag  :  false,touchDrag  :  true});jQuery(\u0027#text_slider\u0027).css(\u0027visibility\u0027, \u0027visible\u0027);var  owl_goto  =  jQuery(\u0027#text_slider\u0027);jQuery(\u0027.text_slider_goto1\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  0);});jQuery(\u0027.text_slider_goto2\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  1);});jQuery(\u0027.text_slider_goto3\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  2);});jQuery(\u0027.text_slider_goto4\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  3);});jQuery(\u0027.text_slider_goto5\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  4);});jQuery(\u0027.text_slider_goto6\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  5);});var  resize_75471  =  jQuery(\u0027.owl-carousel\u0027);resize_75471.on(\u0027initialized.owl.carousel\u0027,  function(e)  {if  (typeof(Event)  === \u0027function\u0027)  {window.dispatchEvent(new  Event(\u0027resize\u0027));}  else  {var  evt  =  window.document.createEvent(\u0027UIEvents\u0027);evt.initUIEvent(\u0027resize\u0027,  true,  false,  window,  0);window.dispatchEvent(evt);}});});\u003c/script\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0022slides-tab\u0022 class=\u0022clearfix eael-tab-content-item \u0022 data-title-link=\u0022slides-tab\u0022\u003e\u003cp\u003e\u003cdiv class=\u0027white\u0027 style=\u0027background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;\u0027\u003e\u003cdiv id=\u0027text_slider\u0027 class=\u0027owl-carousel sa_owl_theme owl-pagination-true\u0027 data-slider-id=\u0027text_slider\u0027 style=\u0027visibility: visible;visibility:visible;\u0027\u003e\u003cdiv id=\u0027text_slider_slide01\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027The-Sumitomo-Copper-Scandal\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e14.1 \u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eThe Sumitomo Copper Scandal\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cem\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Exams-rafiki.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Exams-rafiki.svg\u0022 /\u003e\u003c/a\u003e\u003c/em\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e Isha, I came across something called the Sumitomo Copper Scandal. What was that about?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Ah, that’s one of the most famous cases of market manipulation. A trader named Hamanaka tried to control global copper prices by hoarding physical copper and building huge futures positions.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e Sounds risky. Did it work?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e For a while, yes. But when global supply surged—especially from China—his strategy collapsed. Sumitomo lost billions.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e So it’s a lesson in overconfidence?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Exactly. It shows why risk management and transparency matter more than dominance in any market.\u003c/p\u003e\u003cp\u003eIn the world of commodities, few stories are as infamous—or instructive—as the Sumitomo Copper Scandal. This event, which unfolded in Japan during the mid-1990s, remains one of the most dramatic examples of rogue trading and market manipulation. It’s a cautionary tale that continues to echo through trading floors and risk management discussions even today.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eThe Setup: Sumitomo’s Copper Empire\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003eSumitomo Corporation, a major Japanese conglomerate, was deeply involved in global commodity trading. Among its divisions, copper trading stood out—both for its scale and its influence. At the centre of this operation was Yasuo Hamanaka, Sumitomo’s chief copper trader, often referred to as “Mr. Copper” in industry circles.\u003c/li\u003e\u003cli\u003eHamanaka’s strategy was aggressive and far-reaching. He purchased physical copper from global markets and stored it in warehouses across Japan, Europe, and other key ports. At one point, his spot market holdings represented nearly 5% of the world’s copper reserves—an astonishing figure that gave him significant control over supply.\u003c/li\u003e\u003cli\u003eSimultaneously, Hamanaka built massive long positions in copper futures on the London Metal Exchange (LME). Because the LME did not publish open interest data at the time, the true extent of his exposure remained hidden from other market participants.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eThe Manipulation: How the Strategy Worked\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eWhenever other traders attempted to short copper, Hamanaka would step in and buy aggressively. Backed by Sumitomo’s deep pockets, he could absorb large volumes, pushing prices higher. This created a feedback loop:\u003c/p\u003e\u003cul\u003e\u003cli\u003eRising copper prices squeezed short sellers.\u003c/li\u003e\u003cli\u003eThose who defaulted on futures contracts had to source physical copper—often from Sumitomo—at a premium.\u003c/li\u003e\u003cli\u003eSumitomo profited both from futures and spot sales.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eThis dual-market dominance allowed Hamanaka to profit handsomely and maintain control over copper pricing. For nearly a decade, the strategy worked. Sumitomo became a dominant force in the copper market, and Hamanaka was hailed as a trading genius.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eThe Collapse: When Supply Overwhelmed Strategy\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003eIn the early 1990s, China ramped up its copper production, flooding the global market with supply. Prices began to decline. Hamanaka, heavily leveraged and deeply exposed, struggled to unwind his positions. Instead of cutting losses, he borrowed more to maintain his long exposure—hoping for a rebound.\u003c/li\u003e\u003cli\u003eBut the market didn’t cooperate. Copper prices continued to fall, and the sheer size of his positions made it impossible to exit without triggering further declines. The result was catastrophic: Sumitomo incurred losses estimated at $5 billion, and the scandal led to lawsuits, regulatory scrutiny, and a complete overhaul of internal risk controls.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eLessons Learned\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003eThe Sumitomo Copper Scandal is more than a story of one trader’s downfall—it’s a masterclass in the importance of risk management, transparency, and position sizing. It highlights how unchecked leverage and lack of oversight can bring down even the most powerful institutions.\u003c/li\u003e\u003cli\u003eAs we move into the fundamentals of copper trading, keep this case in mind. Markets reward discipline, not dominance. And no position—no matter how profitable—should ever be immune to scrutiny.\u003c/li\u003e\u003c/ul\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide02\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Copper-Basics\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2\u003e\u003cstrong\u003e\u003cb\u003e14.2 –\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eCopper Basics: Structure, Usage, and Trading on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003c/h2\u003e\u003ch3 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/New-entries-rafiki.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/New-entries-rafiki.svg\u0022 /\u003e\u003c/a\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e That scandal was intense. But what makes copper so important today?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Copper is everywhere—from EVs and telecom to construction and renewable energy. It’s the third most consumed metal globally.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e And it’s traded on MCX too?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Yes, in two formats—standard and mini contracts. High liquidity, strong industrial demand, and macro sensitivity make it a favorite among traders.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e So it reacts to global data like PMI and Fed decisions?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Exactly. And its technical charts are very responsive, which helps in short-term setups.\u003c/p\u003e\u003cp\u003eCopper is one of the most actively traded base metals on the Multi Commodity Exchange (MCX). As a base metal, it belongs to the category of industrial-use metals that are not considered precious—unlike gold or silver. Its high liquidity, with daily turnover exceeding ₹2,000 crore across roughly 55,000 lots, places it in the same league as crude oil and gold in terms of market participation.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eWhy Copper Matters\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eGlobally, copper ranks as the third most consumed metal, following steel and aluminium. Its price is tightly linked to macroeconomic cycles, infrastructure spending, and industrial output. Copper’s versatility stems from its exceptional electrical conductivity, making it indispensable in power transmission and electronics.\u003c/p\u003e\u003cp\u003eFor instance, while most electric vehicles use permanent magnet motors, Tesla’s Model 3 rear-wheel drive variant uses an induction motor with copper windings, reducing reliance on rare earth materials. This design choice highlights copper’s strategic importance in the clean energy transition.\u003c/p\u003e\u003cp\u003eBeyond EVs, copper is used extensively in:\u003c/p\u003e\u003cul\u003e\u003cli\u003eUrban infrastructure and construction (e.g., copper pipes and roofing)\u003c/li\u003e\u003cli\u003eElectrical wiring and switchgear\u003c/li\u003e\u003cli\u003eIndustrial machinery and heat exchangers\u003c/li\u003e\u003cli\u003eRailway electrification and signaling systems\u003c/li\u003e\u003cli\u003eTelecom networks and data centres\u003c/li\u003e\u003cli\u003eRenewable energy installations (solar and wind)\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eOne lesser-known but fascinating application is in antimicrobial surfaces. Hospitals in Europe and Japan have begun using copper alloy door handles and bed rails to reduce infection rates—thanks to copper’s natural ability to kill bacteria on contact.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eGlobal Demand Snapshot\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAs of recent estimates, global refined copper demand exceeds 25 million metric tons annually, with China accounting for nearly 50% of consumption. India’s demand is also rising, driven by electrification, housing, and telecom expansion. However, supply disruptions—such as strikes in Chilean mines or export curbs in Africa—can cause sharp price swings.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eTrading Copper on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eCopper is traded in two contract formats on MCX: the standard Copper Futures and the Copper Mini Futures. Both are settled in cash and follow similar expiry rules, but differ in lot size and margin requirements.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eStandard Copper Contract\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Quote\u003c/b\u003e\u003c/strong\u003e: Per kilogram\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 1 metric ton (1,000 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTick Size\u003c/b\u003e\u003c/strong\u003e: ₹0.05\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹50 (₹0.05 × 1,000 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eExpiry\u003c/b\u003e\u003c/strong\u003e: Last trading day of the month\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDelivery Unit\u003c/b\u003e\u003c/strong\u003e: 10 metric tons\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eLet’s say copper is trading at ₹748.20/kg in October 2025. The contract value would be:\u003c/p\u003e\u003cp\u003eAssuming a margin requirement of 7.5%, the NRML margin would be:\u003c/p\u003e\u003cp\u003eFor intraday trades (MIS), the margin would be roughly half—around ₹28,000.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eCopper Mini Contract\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Quote\u003c/b\u003e\u003c/strong\u003e: Per kilogram\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 250 kg\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTick Size\u003c/b\u003e\u003c/strong\u003e: ₹0.05\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹12.50 (₹0.05 × 250 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eExpiry\u003c/b\u003e\u003c/strong\u003e: Last trading day of the month\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDelivery Unit\u003c/b\u003e\u003c/strong\u003e: 10 metric tons\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eIf the Copper Mini contract is trading at ₹749.00/kg, the contract value would be:\u003c/p\u003e\u003cp\u003eWith a margin requirement of 8%, the NRML margin would be:\u003c/p\u003e\u003cp\u003eThis lower exposure makes the mini contract ideal for retail traders and those testing short-term strategies.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eTrading Strategy Tip\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eCopper’s high liquidity and sensitivity to global economic indicators make it an excellent candidate for technical analysis. Chart patterns, volume spikes, and moving averages work well on copper, especially around macro events like PMI releases, Fed rate decisions, or Chinese industrial data.\u003c/p\u003e\u003ch3 style=\u0022text-align: left\u0022\u003e\u003c/h3\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide03\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Aluminium-Basics\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e14.3 \u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eAluminium Basics: Abundance, Applications, and Trading Dynamics\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp style=\u0022text-align: left\u0022\u003e\u003cem\u003e\u003cspan style=\u0022color: #000080\u0022\u003e\u003cstrong\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Search-engines-bro.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Search-engines-bro.svg\u0022 /\u003e\u003c/a\u003e\u003c/strong\u003e\u003c/span\u003e\u003c/em\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eVarun: \u003c/strong\u003eIsha, what about aluminium? I always thought of it as packaging material.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eIsha:\u003c/strong\u003e It’s much more than that. Aluminium is used in aerospace, EVs, construction, and electronics. It’s lightweight, corrosion-resistant, and highly recyclable.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eVarun:\u003c/strong\u003e So it’s industrially critical?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eIsha: \u003c/strong\u003eAbsolutely. India’s demand is rising fast, and global production is over 60 million metric tons. But prices can swing due to energy costs and policy changes.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eVarun:\u003c/strong\u003e Like the aluminium can shortage in India?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eIsha:\u003c/strong\u003e Exactly. Even with abundant supply, local bottlenecks can create trading opportunities.\u003c/p\u003e\u003cp\u003eAluminium is one of the most widely used base metals in the world and a highly liquid commodity on MCX. While many associate it with kitchen foil or beverage cans, its industrial significance goes far beyond. From aerospace to electronics, aluminium plays a critical role in modern infrastructure and manufacturing.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eAbundance and Properties\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAluminium is the third most abundant element in the Earth’s crust, making up nearly 8% of its composition—after oxygen and silicon. This abundance ensures that supply disruptions are rare, and prices are more influenced by energy costs and demand cycles than scarcity. One of aluminium’s most valuable properties is its resistance to corrosion, which makes it ideal for outdoor structures, marine applications, and long-lasting components.\u003c/p\u003e\u003cp\u003eHowever, aluminium production is extremely energy-intensive. It takes approximately 17.4 megawatt-hours of electricity to produce just one metric ton. This is why power costs form a significant portion of manufacturing expenses for companies like Hindalco and Vedanta. On the flip side, recycling aluminium requires only 5% of the energy, making it one of the most sustainable metals in circulation.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIndustrial Applications\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAluminium’s versatility is unmatched. It’s used in:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eAerospace\u003c/b\u003e\u003c/strong\u003e: A Boeing 747 uses over 70,000 kg of aluminium in its structure.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eAutomotive\u003c/b\u003e\u003c/strong\u003e: Lightweight frames and engine components.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eConstruction\u003c/b\u003e\u003c/strong\u003e: Windows, roofing, and structural panels.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eElectronics\u003c/b\u003e\u003c/strong\u003e: Smartphone casings and heat sinks.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDefense and Railways\u003c/b\u003e\u003c/strong\u003e: Armored vehicles and high-speed train bodies.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePharmaceuticals and Packaging\u003c/b\u003e\u003c/strong\u003e: Foils, blister packs, and containers.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eIndia’s demand for aluminium is growing rapidly, driven by infrastructure projects, EV adoption, and smart city initiatives. Domestic consumption is estimated at \u003cstrong\u003e\u003cb\u003e2 million \u003c/b\u003e\u003c/strong\u003emetric tons annually, with a significant portion met through imports.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eGlobal Market Trends (2025)\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eAs per recent industry reports, global aluminium production in 2025 is projected to reach 60 million metric tons, up from 56 million in 2015. Demand is keeping pace, especially from China, Southeast Asia, and India. However, prices have remained volatile due to energy costs, geopolitical tensions, and trade policies.\u003c/p\u003e\u003cp\u003eHere’s a snapshot of global aluminium trends:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eProduction Growth\u003c/b\u003e\u003c/strong\u003e: CAGR of ~6% over the last decade.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDemand Stability\u003c/b\u003e\u003c/strong\u003e: Closely matches supply, minimizing inventory build-up.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Volatility\u003c/b\u003e\u003c/strong\u003e: Average price in 2025 ranges from $2,580/MT in Chinato $3,095/MT in Germany, reflecting regional disparities.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eTrading Aluminium on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAluminium is traded in two formats on MCX:\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eStandard Aluminium Contract\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003ePrice Quote\u003c/b\u003e\u003c/strong\u003e: Per kilogram\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 1 metric ton (1,000 kg)\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTick Size\u003c/b\u003e\u003c/strong\u003e: ₹0.05\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹50\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eExpiry\u003c/b\u003e\u003c/strong\u003e: Last trading day of the month\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eDelivery Unit\u003c/b\u003e\u003c/strong\u003e: 10 metric tons\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eExample: If aluminium is trading at ₹215.40/kg, the contract value is:\u003c/p\u003e\u003cp\u003eWith a margin requirement of \u003cstrong\u003e\u003cb\u003e8%\u003c/b\u003e\u003c/strong\u003e, NRML margin would be ₹17,232.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eAluminium Mini Contract\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eLot Size\u003c/b\u003e\u003c/strong\u003e: 250 kg\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eP\u0026amp;L per Tick\u003c/b\u003e\u003c/strong\u003e: ₹12.50\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMargin\u003c/b\u003e\u003c/strong\u003e: ~4.5% for MIS, ~9% for NRML\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eThis mini version is ideal for retail traders and short-term strategies.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eAluminium Fundamentals: A 2025 Snapshot\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eAluminium remains one of the most actively traded base metals on MCX, prized for its liquidity, industrial relevance, and responsiveness to global macro trends. While long-term fundamentals are important, most traders hold aluminium positions for just a few days—making it more practical to focus on price dynamics, technical setups, and short-term supply-demand shifts.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eReal-World Example: Aluminium Can Shortage in India (2025)\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eIn April 2025, India’s beverage industry faced a major disruption due to a shortage of aluminium cans, triggered by new BIS certification rules. The Brewers Association of India estimated a shortfall of 12–13 crore units of 500 ml cans, which account for nearly 20% of beer sales nationwide. This supply crunch was not due to lack of raw aluminium, but due to bottlenecks in domestic manufacturing and import approvals.\u003c/p\u003e\u003cp\u003eThis incident highlights a key principle in aluminium trading: price is not just about global supply—it’s about regional bottlenecks, energy costs, and policy shifts. Even with abundant global production, local disruptions can create short-term price spikes and trading opportunities.\u003c/p\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eGlobal Trends in 2025\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eAccording to the Aluminium Global Industry Report:\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003eGlobal productionis projected to exceed 60 million metric tons, with steady growth from Southeast Asia and the Middle East.\u003c/li\u003e\u003cli\u003eConsumptionis keeping pace, driven by EVs, solar infrastructure, and packaging.\u003c/li\u003e\u003cli\u003ePriceshave rebounded from their 2020 lows, averaging $2,580/MT in China and $3,095/MT in Europe, reflecting regional energy costs and tariffs.\u003c/li\u003e\u003cli\u003eIndia’s demand is estimated at 2.2 million metric tons, with imports still playing a major role due to limited domestic smelting capacity.\u003c/li\u003e\u003c/ul\u003e\u003ch3\u003e\u003cstrong\u003e\u003cb\u003eTrading Insight\u003c/b\u003e\u003c/strong\u003e\u003c/h3\u003e\u003cp\u003eThis kind of event-driven volatility—like the aluminium can shortage—can be spotted early through news flow and inventory data. For short-term traders, it’s a reminder that technical analysis works best when paired with real-world context. A sudden spike in demand from packaging or auto sectors, or a policy change like tariffs or certification rules, can shift prices even if global supply remains stable.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide04\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Aluminium-Contracts-on-MCX\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e14.4 \u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eAluminium Contracts on MCX\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Warning-rafiki.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Warning-rafiki.svg\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e Isha, I’m thinking of trading aluminium. What are the contract options?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e MCX offers two: the standard contract with 5 metric tons and the mini with 1 metric ton. Both are quoted per kg and settled monthly.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e So the mini is better for retail traders?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Yes. Lower margins, smaller tick value, and manageable exposure. Great for short-term strategies and learning the ropes.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eVarun:\u003c/b\u003e\u003c/strong\u003e And the standard one suits bigger players?\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eIsha:\u003c/b\u003e\u003c/strong\u003e Exactly. It offers deeper liquidity and higher tick value—ideal for institutions and high-volume traders.\u003c/p\u003e\u003cp\u003eAluminium is a popular base metal on MCX, offering two distinct futures contracts: the Standard Aluminium Contract and the Aluminium Mini Contract. Both are quoted per kilogram and settled monthly, but they differ significantly in lot size, margin requirements, and tick value—making them suitable for different types of traders.\u003c/p\u003e\u003cp\u003eLet’s break down each contract and understand how they work in practice.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eStandard Aluminium Contract (5 MT)\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eThis is the larger of the two contracts and is typically favoured by institutional traders or high-volume participants. The daily traded value averages around ₹375 crore, and on active days, it can exceed ₹500 crore. While not as large as gold or crude oil, aluminium still offers excellent liquidity and tight spreads.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eContract Specifications:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003ctable\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eParameter\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eValue\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003ePrice Quote\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003ePer kilogram\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eLot Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e5 metric tons (5,000 kg)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eTick Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eP\u0026amp;L per Tick\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05 × 5,000 = ₹250\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eExpiry\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003eLast trading day of the month\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eDelivery Unit\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e10 metric tons\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/table\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eExample (October 2025):\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eLet’s say aluminium is trading at ₹262.60/kg. The contract value would be:\u003c/p\u003e\u003cp\u003eIf the price moves by one tick (₹0.05), your profit or loss would be:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eMargin Requirements:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eNRML (Overnight)\u003c/b\u003e\u003c/strong\u003e: ~5.6% → ₹73,528\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMIS (Intraday)\u003c/b\u003e\u003c/strong\u003e: ~2.8% → ₹36,764\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eAluminium Mini Contract (1 MT)\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eThis contract is designed for retail traders and those looking for smaller exposure. It’s ideal for short-term strategies and technical setups, with manageable risk and lower capital requirements.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eContract Specifications:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003ctable\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eParameter\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eValue\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003ePrice Quote\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003ePer kilogram\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eLot Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e1 metric ton (1,000 kg)\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eTick Size\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eP\u0026amp;L per Tick\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e₹0.05 × 1,000 = ₹50\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eExpiry\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003eLast trading day of the month\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd\u003e\u003cp\u003eDelivery Unit\u003c/p\u003e\u003c/td\u003e\u003ctd\u003e\u003cp\u003e10 metric tons\u003c/p\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/table\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eExample \u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eIf aluminium mini is trading at ₹262.60/kg, the contract value is:\u003c/p\u003e\u003cp\u003eA single tick movement gives:\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eMargin Requirements:\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eNRML\u003c/b\u003e\u003c/strong\u003e: ~5.7% → ₹14,968\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMIS\u003c/b\u003e\u003c/strong\u003e: ~2.8% → ₹7,484\u003c/li\u003e\u003c/ul\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide05\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Key-Takeaway\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2\u003e\u003cstrong\u003e\u003cb\u003e14.5 \u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eKey Takeaway\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eThe Sumitomo Copper Scandal highlights the dangers of unchecked leverage and market manipulation.\u003c/li\u003e\u003cli\u003eCopper is a vital industrial metal, used in EVs, infrastructure, electronics, and renewable energy.\u003c/li\u003e\u003cli\u003eCopper demand is macro-sensitive, reacting to global data like PMI, Fed decisions, and Chinese output.\u003c/li\u003e\u003cli\u003eMCX offers standard and mini copper contracts, with different lot sizes and margin requirements.\u003c/li\u003e\u003cli\u003eAluminium is the most abundant industrial metal, used across aerospace, construction, packaging, and electronics.\u003c/li\u003e\u003cli\u003eAluminium production is energy-intensive, making prices sensitive to power costs and policy shifts.\u003c/li\u003e\u003cli\u003eIndia’s aluminium demand is rising, driven by infrastructure, EVs, and smart city projects.\u003c/li\u003e\u003cli\u003eMCX aluminium contracts come in standard (5 MT) and mini (1 MT) formats, catering to different trader profiles.\u003c/li\u003e\u003cli\u003eEvent-driven volatility—like the 2025 aluminium can shortage—can create short-term trading opportunities.\u003c/li\u003e\u003cli\u003eBoth copper and aluminium are excellent for technical analysis, offering liquidity, responsiveness, and macro relevance.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u0026nbsp;\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide06\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Fun-Activity\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; min-height:400px; \u0027\u003e\u003ch2\u003e\u003cstrong\u003e\u003cb\u003e14.6 \u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eFun Activity\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022style-svg aligncenter\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2021/11/Questions-bro.svg\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003eFill in the blanks:\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003eCopper Mini contract has a tick size of ₹0.05 and a lot size of 250 kg. → P\u0026amp;L per tick = _______\u003c/li\u003e\u003cli\u003eAluminium Mini contract has a tick size of ₹0.05 and a lot size of 1,000 kg. → P\u0026amp;L per tick = _______\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cstrong\u003eAnswers:\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003e₹0.05 × 250 = ₹12.50\u003c/li\u003e\u003cli\u003e₹0.05 × 1,000 = ₹50\u003c/li\u003e\u003c/ol\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003cscript type=\u0027text/javascript\u0027\u003ejQuery(document).ready(function()  {jQuery(\u0027#text_slider\u0027).owlCarousel({items  :  1,smartSpeed  :  400,autoplay  :  false,autoplayHoverPause  :  false,smartSpeed  :  400,fluidSpeed  :  400,autoplaySpeed  :  400,navSpeed  :  400,dotsSpeed  :  400,dotsEach  :  1,loop  :  false,nav  :  true,navText  :  [\u0027Previous\u0027,\u0027Next\u0027],dots  :  true,responsiveRefreshRate  :  200,slideBy  :  1,mergeFit  :  true,autoHeight  :  true,mouseDrag  :  false,touchDrag  :  true});jQuery(\u0027#text_slider\u0027).css(\u0027visibility\u0027, \u0027visible\u0027);var  owl_goto  =  jQuery(\u0027#text_slider\u0027);jQuery(\u0027.text_slider_goto1\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  0);});jQuery(\u0027.text_slider_goto2\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  1);});jQuery(\u0027.text_slider_goto3\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  2);});jQuery(\u0027.text_slider_goto4\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  3);});jQuery(\u0027.text_slider_goto5\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  4);});jQuery(\u0027.text_slider_goto6\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  5);});var  resize_75471  =  jQuery(\u0027.owl-carousel\u0027);resize_75471.on(\u0027initialized.owl.carousel\u0027,  function(e)  {if  (typeof(Event)  === \u0027function\u0027)  {window.dispatchEvent(new  Event(\u0027resize\u0027));}  else  {var  evt  =  window.document.createEvent(\u0027UIEvents\u0027);evt.initUIEvent(\u0027resize\u0027,  true,  false,  window,  0);window.dispatchEvent(evt);}});});\u003c/script\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0022videos-tab\u0022 class=\u0022clearfix eael-tab-content-item \u0022 data-title-link=\u0022videos-tab\u0022\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/section\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/section\u003e\u003c/div\u003e","protected":false},"excerpt":{"rendered":"\u003cp\u003eStudy Slides Videos 13.1 The Sumitomo Copper Scandal: A Case Study in Market Manipulation and Risk Varun: Isha, I came across something called the Sumitomo Copper Scandal. What was that about? Isha: Ah, that’s one of the most famous cases of market manipulation. A trader named Hamanaka tried to control global copper prices by hoarding physical copper … \u003ca title=\u0022Copper and Aluminium\u0022 class=\u0022read-more\u0022 href=\u0022https://www.5paisa.com/marathi/finschool/course/currency-commodity-government-securities-course/copper-and-aluminium/\u0022 aria-label=\u0022Read more about Copper and Aluminium\u0022\u003eRead more\u003c/a\u003e\u003c/p\u003e","protected":false},"author":1,"featured_media":0,"parent":13805,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"class_list":["post-75500","markets","type-markets","status-publish","format-standard","hentry"],"acf":[],"_links":{"self":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/75500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets"}],"about":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/types/markets"}],"author":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/users/1"}],"replies":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/comments?post=75500"}],"version-history":[{"count":5,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/75500/revisions"}],"predecessor-version":[{"id":75529,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/75500/revisions/75529"}],"up":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/13805"}],"wp:attachment":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media?parent=75500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/categories?post=75500"}],"curies":[{"name":"wp","href":"https://api.w.org/{rel}","templated":true}]}}