- LME copper stocks plunge to 2-year low
- Metro Mining’s bauxite shipments surge 26%
Base metals prices on the London Metal Exchange (LME) remained rangebound d-o-d, with copper increasing by 1.23% to $9,740/tonne (t). Meanwhile, inventories at LME-registered warehouses dropped d-o-d, with copper recording the steepest fall of 2.37%.
LME copper stocks drop to 2-year low
LME on-warrant copper stocks have plunged 48% since 20 May, hitting 54,700 t, the lowest since July 2023. Copper also recorded the steepest daily inventory drop of 2.37%, reflecting heightened outflows. Fears of US import tariffs under Section 232, triggered by Donald Trump’s order, have driven large volumes of copper from LME to US Comex warehouses. As a result, Comex stocks are now higher than LME, with Comex volumes nearly doubling in 2024.
China likely behind recent LME copper stock drop
LME copper stocks fell sharply from late May to early June, not due to more shipments to Comex, but likely from Chinese buyers rushing to secure spot supply. With almost no Comex-approved copper left in LME warehouses, focus has shifted to metal from China (46.2%) and Russia (51.6%), which together made up 97.8% of LME stock as of April.
Most of this metal was stored in Rotterdam and Hamburg, which held 64% of on-warrant stocks before 21 May. By 4 June, their inventories dropped by 50% to 33,150 t. The urgent demand is likely driven by limited global options for Chinese buyers after non-Chinese copper moved to the US.
COMEX market
Copper prices on the COMEX stood at $10,791/t, remaining stable compared to the previous close.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 790,000/t ex-Delhi. Aluminium Tense scrap prices remained steady d-o-d, with ex-Delhi at INR 196,000/t and ex-Chennai at INR 197,000/t.
Copper armature scrap was assessed at INR 790,000/t ex-Delhi, while motors mix was stable w-o-w at $1,150/t. A trader source stated, “Domestic copper scrap availability has been good of late. Domestic copper scrap availability remains healthy, but demand in the finished segment continues to lag, especially with seasonal slowdown affecting offtake. Raw material prices remain elevated, putting pressure on conversion margins. As a result, the market has adopted a cautious, wait-and-watch stance.”
Market updates
Metro Mining boosts may bauxite shipments by 26%
Metro Mining Limited reported a 26% y-o-y rise in May bauxite shipments, reaching 671,934 wet metric tonnes (WMT), following a strong April. With a 2025 target of 6.5-7 million WMT, the company benefits from major infrastructure upgrades at its Australian Bauxite Hills Mine in Queensland. Enhanced mining fleets and marine loading systems have boosted capacity and resilience, supporting operations despite earlier weather disruptions.
Oil prices down d-o-d
Brent crude futures were recorded at $65.04/barrel today. Meanwhile, WTI crude oil futures decreased by 0.49% d-o-d to $63.06/barrel.
Dollar index inches up
The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 98.79, up by 0.09% d-o-d at the time of reporting. The Indian rupee was recorded at INR 85.71 against the dollar.
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