- LME curbs large trades amid shortages
- Copper supply squeeze threatens production
Base metals prices on the London Metal Exchange (LME) saw mixed trends d-o-d, with aluminium increasing by 1.11% to $2,550/tonne (t). Meanwhile, inventories at LME-registered warehouses saw negative trends d-o-d, with copper recording the highest decline of 3.99%.
Indian market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 803,000/t ex-Delhi, down by INR 2000/t d-o-d. Aluminium Tense scrap prices declined by INR 1,000/t d-o-d, with ex-Delhi at INR 196,000/t and ex-Chennai at INR 197,000/t.
LME tightens rules amid copper supply squeeze
The London Metal Exchange has imposed new rules to curb large positions in near-term contracts due to critically low inventories. This move, prompted by a surge in copper premiums, aims to prevent market manipulation. With copper stocks down 60% since February, supply constraints could disrupt global industrial production and escalate manufacturing costs.
Copper market sentiment hit by geopolitical tensions
Escalating tensions in the Middle East have weighed heavily on copper market sentiment, fuelling volatility and uncertainty among traders. Concerns over potential supply disruptions, heightened geopolitical risks, and the prospect of new tariffs have prompted cautious trading. Market participants are closely monitoring developments, with risk aversion rising and a wait-and-see approach prevailing as global economic and political uncertainties persist.
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