- Nickel prices slip below $15,000/t
- Indian rupee drops to 2-week low
Base metals prices on the London Metal Exchange (LME) saw slight positive trends d-o-d, with zinc increasing by 1.90% to $2,818/tonne (t). However, three-month closing prices and warehouse inventories remained unchanged, as the exchange was closed on 25 August due to a summer bank holiday.
Domestic market overview
In India’s non-ferrous metals markets, BigMint assessed domestic copper armature scrap at INR 796,000/t ex-Delhi, up by INR 4,000/t d-o-d. Aluminium Tense scrap prices remained flat d-o-d, with ex-Delhi at INR 196,000/t and ex-Chennai at INR 199,000/t.
Other market updates
Gujarat emerges as India’s copper powerhouse
Gujarat has rapidly become India’s leading copper hub despite limited ore reserves, driven by major investments from Hindalco and Adani at Dahej and Mundra. With Hindalco’s planned smelter expansion and Adani’s Kutch facility scaling up to 1 million tonnes (mnt) per annum by FY’29, the state has overtaken Tamil Nadu, which lost ground after Vedanta’s Tuticorin smelter closure. Gujarat’s port connectivity, industrial infrastructure, and investor-friendly policies give it a strategic edge, helping meet surging copper demand from renewable energy, infrastructure, and electric vehicles. This growth is expected to reduce India’s import dependence and support its transition towards becoming a net copper exporter again.
Nickel dips below $15,000/t on supply glut
Nickel prices slipped under $15,000/t as rising global supplies, led by Indonesia’s strong output, weighed on the market. Despite stable base prices, nickel remained weak, keeping stainless steel surcharges subdued. LME inventories have climbed up to 195,000 t this year, boosted by Chinese refiners in Indonesia, while local demand there has already peaked, forcing some smelter cutbacks. Analysts note that only prolonged production curbs could offset the persistent surplus, with any meaningful recovery hinging on stronger end-user demand.
Rupee weakens ahead of US tariff hike
The Indian rupee fell to a two-week low near 87.95 against the US Dollar, as traders priced in fresh US tariffs of 50% on Indian exports, effective Wednesday. Heavy foreign fund outflows added to the pressure, while political turmoil in the US — marked by President Trump’s removal of Fed Governor Lisa Cook — cast doubts on the Federal Reserve’s independence. Volatility in USD/INR is expected to continue, with the pair testing resistance near 88.25 if the dollar’s strength persists.
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